Housing Allowance

[Marie]

How do I enter housing allowance for my pastor on his payroll report?

[Paul Mayer]

Is this for housing provided by the church as in a parsonage or paying him or her an allowance to rent a place?

And is it non-taxable?

[Marie]

The allowance is provided by the church and it is not taxed by the state.

[Paul Mayer]

OK, I'm assuming that you already have set the pastor as non-taxable for his pay? If so, you can use the Bonus field to enter and track the housing allowance that you are paying.

Then at the end of year you would edit the W2 Form before printing if needed.

[Marie]

The pastor's pay is taxed does that make a difference?

[Paul Mayer]

Yes it would make a difference since you said it was not taxed by the state.

You could still do this by seeing how much the allowance would be taxed by the state and then after calculating the taxes, adjust the state tax to be less that amount of tax that you predetermined and then click Save and close to store the transaction.

[Marie]

thank you. I will try that.