Ministers paycheck deduction - IRS Section 107 Allowance

[rasrjs32]

Each year we complete the declaration form for the amount allowance. We then make a check payable the pastor for the full amount. At each paycheck we deduct for this amount for 24 paychecks.

Example - $150 is the amount; $6.25 is deducted from 24 paychecks.

Is this the correct procedure for this? If this is - how is this explained?

This is also deducted from his gross pay that is reported on the W2. This is reported under Section 14 of the W2.

Thank You
RASRJS32

[Paul Mayer]

You need to create a non-taxable deduction and set it up in the Company settings and the employee settings.

See these pages in the help file:

For the company:
http://zpay.com/pw-online-help/module_9_3.htm?mw=MjMw&st=MQ==&sct=MTE3&ms=AAA=

And the employee:
http://zpay.com/pw-online-help/module_10_4.htm?mw=MjMw&st=MQ==&sct=MTE3&ms=AAA=