Ep 86 ~ Benevolence and Employees

The Church Finance & Minister Tax Podcast- Church finances, Minister Taxes, Minister payroll, IRS Compliance

Summary

• Direct Employer Payments: Benevolence funds provided directly by an employer to an employee are generally included in the employee's gross income under Section 102(c).
• Qualified Disaster Relief Payments: Payments made by an employer to employees for disaster-related expenses can be excluded from gross income under Section 139 if they meet the criteria for qualified disaster relief payments.
• Documentation: Employers must ensure that payments are commensurate with the expenses incurred and maintain adequate records to support the exclusion from gross income.

In conclusion, while benevolence funds provided by an employer are typically taxable, exceptions exist under Section 139 for qualified disaster relief payments, provided specific criteria and documentation requirements are met.

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Disclaimer: The information provided in the Church Finance and Minister Tax podcast is for general informational purposes only and is not intended as legal advice. The content discussed is based on personal opinions, experiences, and research performed and should not be considered a substitute for professional legal advice. Always consult with a qualified attorney or legal expert for advice regarding your specific situation. The host and guests of this podcast are not responsible for any actions taken based on the information provided.