Tax Deferred Retirement Account

by Jessica
(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?

Click here to post comments

Join in and write your own page! It's easy to do. How? Simply click here to return to Fringe Benefits.

If you want to DIY your payroll, I highly recommend you look at using Gusto! It is very user friendly and their support is awesome! Plus they know how to set up and maintain payrolls for churches and nonprofit organizations.

Note: I am a "partner" of Gusto, but as I have told you before ... I never recommend anything that we or our clients have not tried and love =)

Share this page:
Enjoy this page? Please pay it forward. Here's how...

Would you prefer to share this page with others by linking to it?

  1. Click on the HTML link code below.
  2. Copy and paste it, adding a note of your own, into your blog, a Web page, forums, a blog comment, your Facebook account, or anywhere that someone would find this page valuable.