Ministers and clergy
Looking for help with your church's accounting? Gusto connects to Aplos Accounting to automatically track your payroll and tax payments. We also support the W-2 requirements and unique church payroll needs for pastor housing allowances and tax exemptions.
In order to create end of year federal filings, ministers and clergy must also have taxable wages in addition to any housing allowances issued.
Tax exemptions for ministers and clergy
Ministers may be exempt from certain taxes such as Social Security and Medicare. Please refer to the Topic 417 - Earnings for Clergy for more details on how to request for these tax exemptions with the IRS.
Once you have confirmed that the minister is exempt from these taxes, set up the tax exemption in Gusto under the People tab.
Housing allowances for ministers and clergy
Ministers may also be given an official housing allowance that is excluded from taxable gross wages. To accommodate this, add the housing allowance amount as a reimbursement in payrolls.
If you would like the housing allowance reported on the W-2, please let us know the total amount at year end. Our Customer Care team will help you get this recorded.