W-2's for Clergy

by anon

I complete the W2 for a Pastor. Can you tell me what I am required to report as Payroll on his w-2?

He gets a housing allowance, car allowance and Pay.

Recently his accountant had us change what was regular pay and what was housing allowance and car allowance(reducing what showed on his w-2 as housing allowance).

What should be included as his income on his w-2? I want to make sure I am complying with the current tax law

Comments for W-2's for Clergy

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Feb 13, 2015
W-2 for clergy. . .
by: Lewis in NC

If the clergy is paid an additional cash amount for housing to the salary, it is not included in Box 1 with the salary amount. Whether the car allowance is included in Box 1 with salary depends on the accountable reimbursement policy adopted by the church. If the church keeps a file for car expense containing a properly kept log of clergy travel, then the car allowance can also be excluded from Box 1.

Feb 15, 2015
Additionally for W-2 Question
by: Lewis in NC

Also,if the housing allowance is paid within the salary to the clergy, it would be excluded before reporting in Box 1 of the W-2.

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Join in and write your own page! It's easy to do. How? Simply click here to return to Clergy Tax Q&A.

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 =)

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