Additional Taxable Income

[Sheilah]

I need to increase the Pastor's taxable income that will be reported on his W2 for 2008 without increasing his check. Is there any way to do this through payroll? This is to account for his cell phone that the church pays for.

Thanks.
Sheilah

[Jeff]

If you want to track this through payroll, the only option would be to add the additional income and then create a deduction for the cell phone.

[debbie]

You may want to check out the irs.gov site and look up Publication 15, Circular E:

Page 10 - 5. Wages and Compensation - Employee business expense reimbursements.

Sounds like the cell phone is an accountable plan which would not be subject to income tax withholding.