This tutorial shows how to set up Housing Allowance (In-Kind) inside Payroll Mate® software.
Clergy Housing (In-kind) is used to report the value of a house, furnishings, utilities and etc. that are furnished to a duly ordained minister as part of the minister’s pay. These amounts are typically exempt from income tax but subject to self-employment tax (calculated and paid by the minister) and will not affect the net pay.
Summary of Steps
This is just a summary; please click “Download Tutorial” for detailed instructions with screenshots.
- Click → Company from shortcuts
- Click → Income Categories
- Click → Add
- Enter Title for income
- Select Pay Type from dropdown menu
- Enter W2 Box 14 Abbreviation
- Checkmark to Omit from Net Pay and Edit Taxes and Deductions as needed (Note: Clergy Housing (In-Kind) is excluded from net pay. Typically, this income will be exempt from the following: Federal income tax, Social Security, Medicare, and Federal Unemployment.)
- Click → OK
You will need to apply the housing allowance (in-kind) income to each employee as needed
- Click → Employees from shortcuts
- Select an employee from the list
- Click → Edit
- The Modify Employee Wizard will open, Click → Next until you are on the Incomes page
- Checkmark to select Housing Allowance In-Kind income and enter amount as applicable
- Click → Next until you reach the end of the wizard
- Click → Finish to save
- Repeat employee steps for each applicable employee