Payroll Software for Church: How to Handle Housing Allowance
A minister's housing allowance, sometimes called a parsonage allowance or a rental allowance is excludable from gross income for income tax purposes.
With ezPaycheck payroll software, you can use the MISC check feature to handle the payment for house allowance easily.
Print MISC check for housing allowance
- Start ezPaycheck payroll software
- Click the left menu "Checks", then click "MISC check".
- Click the "Add New Check" button to add a new check
No income taxes will be withheld from the MISC checks. You can also this MISC check feature to pay employees non-taxable reimbursements or pay your vendors.
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W2 report for Housing Allowance
You can enter the housing allowance payment to W2 box 14 when you file the year-end return. If you have any questions, you can contact your local IRS office.