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Non Cash Compensation in Payroll
Posted: Thu Dec 28, 2023 1:03 pm
by chutcherson
Our senior pastor will be retiring and the church would like to gift him his car (owned by the church/driven by the pastor). How do I process this non cash item in payroll and withhold required taxes?
Re: Non Cash Compensation in Payroll
Posted: Thu Dec 28, 2023 5:49 pm
by NeilZ
chutcherson wrote: ↑Thu Dec 28, 2023 1:03 pm
Our senior pastor will be retiring and the church would like to gift him his car (owned by the church/driven by the pastor). How do I process this non cash item in payroll and withhold required taxes?
There's really no way to process this in payroll, as far as taxes, you can calculate what the current value is of the car, figure what the tax is, and add it to the final tax deduction amount to get that withheld.
You'll have to check the IRS pubs for the proper form to give to the pastor, but it may be a 1099-MISC which is reported to the IRS.