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Q&A: Is Our Pastor's Discretionary Account Considered Taxable Income?

Such discretionary funds are full of potential payroll and accounting pitfalls.

Q&A: Is Our Pastor's Discretionary Account Considered Taxable Income?

Our church has a discretionary account the minister can use for various purposes. No other staff may access this account. Our Board of Pensions guidelines state, "A minister's taxable wages must include Discretionary Funds" if the minister is allowed to distribute funds for his or her personal benefit; and if the minister has the authority to disburse funds directly to himself. This past year money contributed to the fund were included in the minister's W-2. We are wondering if the following motion allows contributions to not be included in his W-2:

The Session establishes the Emergency Mission Fund and adopts the following standard: no pastor or employee of Central Presbyterian Church has the authority to disburse any church funds to himself or herself. All disbursements, or reimbursements for disbursement, must be authorized by two other church officers not related to ...

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Posted:
  • December 8, 2009

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