Tax Deferred Retirement Account
(Hot Springs, AR, USA)
We have a new interim pastor who wants $19,000 cash salary, $20,000 housing allowance, and $26,000 deferred compensation.
He has set up an account with Pension Fund of the Christian Church.
I have contacted the pension fund, and it is a pre-tax 403B account that I'll need to withhold approximately $1,083.33/paycheck. (We have bimonthly payroll.) Then, I would send $2,166.66 to the pension fund every month.
My question is how do I set this up in his payroll? Would I add the $26,000 to his $19,000 cash salary and then just withhold the $1,083.33 every paycheck? Is it acceptable to do it this way or is there a better way?
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