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Continuing education for ministry leaders
Weekly Lessons, created and written by Richard R. Hammar, J.D., LL.M., CPA, give you a basic legal overview of essential topics based on staff or volunteer positions within a church.

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This Week's LessonWeek of April 7

Nonaccountable Reimbursements


This lesson focuses on an important issue for church business administrators: nonaccountable reimbursements. You can review the Executive Summary to obtain the key points or read the Weekly Lesson for a more thorough presentation of this topic. Start by completing the following interactive quiz to test your knowledge.

A church pays its pastor a monthly car allowance of $400. The pastor is not required to account to the church for any business miles, or return to the church any portion of the monthly allowances that exceed the actual cost of using the car for business. The church treasurer assumes that allowances are a nontaxable fringe benefit, and need not be included on the pastor's W-2. Is this assumption correct?

Weekly Exercise

Click on the correct answer for each of the following questions.

Executive Summary

A church's reimbursement of an employee's business expenses is "nonaccountable" ...

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2020 Church & Clergy Tax Guide
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