Pastor & Staff Love Gifts

[mshallow]

Hello,
Each year the congregation gives contributions/donations for employees. Every employee receives a different amount. All of the donations are received and deposited by the church. It's more than $25.

I'm not asking for tax advice. It has been handled previously as taxable income for the employee and that makes sense to me.

https://www.irs.gov/government-entities ... e-benefits

If your church does this, how do you handle? I'm okay if no one would like to answer.

Thank you,

Maurice

[NeilZ]

Hello,
Each year the congregation gives contributions/donations for employees. Every employee receives a different amount. All of the donations are received and deposited by the church. It's more than $25.

I'm not asking for tax advice. It has been handled previously as taxable income for the employee and that makes sense to me.

https://www.irs.gov/government-entities ... e-benefits

If your church does this, how do you handle? I'm okay if no one would like to answer.

Thank you,

Maurice

These are taxable items, no matter what they are called. Any sort of 'bonus', ' end of year gift', 'love gift', is according to the IRS, taxible.

The guide you should be using is IRS Pub 15 and its associated pubs. In this case, specificially IRS Pub 15-B.

I usually have a income payroll item setup for 'Christmas Bonus/Gift', and manually enter the amount there for the end of year paycheck.

[mshallow]

Thank you for your help! Sorry I haven't responded earlier. Been busy and out sick. I did handle as taxable.