Pastoral Housing Allowance Payment

[maevertson]

I want to pay the pastor an additional payment (check) for his housing allowance not as part of his weekly paycheck. The payment will be tax exempt but not FICA nor Medicare exempt. What would be the best way to accomplish this? I have watched the video on deductions but don't see how I can do this if it is not part of his normal paycheck.

[Paul Mayer]

You can only pay one check per employee per pay date so pay the pastor the amount you want on a different day. click to calculate the taxes and then delete the FIT and press the tab key to recalculate the Net pay and save.

[maevertson]

Thank you. Making the changes and using the tab key instead of F6 worked to pay him without Federal and State taxes. But when I check the W-2, it adds it to line 1 as well as line 3 & 5. Am I going to have to change his "Pay/Exempt From" for this transaction to keep it from posting on line1?

[Paul Mayer]

Unfortunately if you did mark him exempt from FIT, all of his wages will be triggered as exempt for the year. We don't have a ay to handle tat other than what I showed you. The only way around that would be if you used W2Express where you can edit the W2 Forms seen on our Partners Page.

[maevertson]

want to pay the pastor an additional payment (check) for his housing allowance not as part of his weekly paycheck. The payment will be tax exempt but not FICA nor Medicare exempt. What would be the best way to accomplish this? I have watched the video on deductions but don't see how I can do this if it is not part of his normal paycheck.

[Paul Mayer]

Are you not reading the replies below? It cannot be done other that what I explained below in this message thread by paying like I explained and then editing the 941 and W2Forms.