by Bob
(Los Angeles, CA)
If board approval says that they are only going to pay the pastor 100% housing allowance, without payroll, than this would avoid the church having to pay the 100% Social Security and Medicare payments that are matched out of the pastor's paycheck and reported and paid for on the quarterly 941 tax filings.
Now, if the pastor receives 100% housing allowance, and he only technically uses 75% of that in actual expenses throughout the year, than technically, the other 25% is reported as income on his 1040 taxes. But still, at least the church would not be paying the FICA.
Comments for Won't 100% housing allowance avoid the church having to pay FICA?
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