Voluntary salary reduction to a non-profit organization

by Church Treasurer

Our pastor has requested that his salary be reduced by $250 per month as his "contribution or tithe" back to the church in order to reduce his taxable income. I cannot find any IRS rulings that would allow this. Your thoughts? And then if he can do this, don't we have to offer this to all employees.

vickey's reply

No. It would be better to give him the total amount and then he can give his tithes out of it. Even if you do as suggested, you would still have to count the total plus the tithes as income. Anything else would be considered tax evasion.

See this page.

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.

Need training on how to use QBO or Aplos effectively for a church or better yet ...need an expert in either of those accounting software to do your monthly bookkeeping and/or payroll? See more on our accounting services!