Request for Review of Updated Employment Agreement for IRS Compliance

As the Executive Director of Project PEARLS USA, my annual gross income for the last three years has been $75,000. Starting in 2025, the following changes will apply to my compensation structure:

Annual Salary (Post-401(k) Deferral):

The annual taxable salary will be $15,000, paid biweekly. This amount reflects a $7,000 annual deferral to the 401(k) plan and a $3,000 FSA contribution, plus the non-taxable housing allowance.

Housing Allowance:

A non-taxable annual housing allowance of $50,000 will be provided to support my required presence in Hawaii.
Could you please review this updated employment agreement to ensure it meets all IRS requirements for compliance, particularly regarding the non-taxable housing allowance and salary structure? Additionally, I would appreciate guidance on any necessary adjustments for Project PEARLS’ filing to maintain IRS compliance for our 501(c)(3) status.

Thank you for your expertise in this matter. I can send the Employment Agreement file for your review.

Best regards,
Melissa Villa