Payroll

[jfoster182]

I have a family that would like to donate $50.00 per week to be paid to our Youth Pastor. I realize that this is taxable income and plan on adding this to his payroll check, however my question is this. What do I designate that income to credit? And is the $50.00 that is being designated tax deductible for the family which is donating it?

[Randy B]

I would recommend you obtain the Church & Clergy Tax Guide by Richard Hammar at www.churchlawtoday.com or Dan Busby's NonProfit and Church Guide. He also puts out a minister's tax book. I would also recommend you publication 1828 for churches. The deduction is not tax deductible according to IRS Publication 526. How you handle it in your general ledger is up to you. You could put it as benevolence or the all inclusive miscellaneous income.