Your Minister’s Pay Package

Does it comply with current tax laws?

Complexity of current tax laws makes it extremely important to properly arrange the minister’s compensation package.

If various elements of the compensation package are not structured to comply with tax law requirements, unnecessary taxes may be owed by the minister or underpayment of taxes can result. Poor stewardship or underpaying taxes are both poor options.

The minister’s housing allowance deduction is often substantially less than the maximum allowed by tax laws. If so, Federal, State, and Local income taxes may be overpaid.

Ministerial vehicle and other business expenses, unless reimbursed under an IRS “accountable plan”, will be partially nondeductible due to lack of compliance with current tax law requirements.

Contact us for details about our Compensation Package Planning services. We can help.

Posted under Minister's Taxes

This post was written by burbrink on September 10, 2008

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