403(b) reporting on W-2

by Carrie
(Hannibal, MO)

The church paid the pastor $20,000 in wages and $10,000 in housing allowance. $1000 was withheld from the pastors wages and put in a 403(b) plan leaving salary of $19,000.
Please advise us on how to complete the pastor's W-2.
Should $19,000 go in box 1 of the W-2?
Will the $1,000 go in box 12 with the code E?
Will the pastor need to pay SECA tax on the $1000 403(b) on his tax return? I can't find this anywhere. Other "employees" with 403(b)contributions are subject to SS/Med tax on their 403(b) contributions.

Thank you for your assistance,
Carrie

Comments for 403(b) reporting on W-2

Click here to add your own comments

W2 is accurate
by: GB

Hi, I'd agree that your w2 construction is correct as you've indicated. $19k gross wages (box 1), $1k housing allowance (box 14), 403(b) designated code E.

I also agree that the savings are FICA & MED taxable.

pension on w-2
by: Sandi

It depends on how the church did the transactions...

go to:
http://www.irs.gov/uac/Publication-15-(Circular-E),-Employer's-Tax-Guide

scroll down to the table and find:
Retirement and pension plans(if you open the pdf instead of the html it is on page 40)

hope this helps
Prayers

Click here to add your own comments

Join in and write your own page! It's easy to do. How? Simply click here to return to Minister's W-2.