Info on w2
The business manager of the church withholds federal and state, pays FICA and also wants to include housing allowance.
I want to be sure that this is acceptable; I thought it as either one or the other (either treated like an employee with withholdings and FICA or with salary and housing allowance).
I know the correct reporting remains on the taxpayer, so I want to make sure this is correct. In other words, if the W2 shows amounts in the various boxes, can it also show an amount in box 14?
No. If there is amounts in Boxes 3, 4, 5, and 6....there should not be a housing allowance in Box 14.
Also, if the employee is a minister according to IRS guidelines ... the church CANNOT withhold and match FICA.
Ministers are on the SECA system...not the FICA.
See more on paying a minister by clicking "TOPICS" at the top of this page and then going down to "Minister Taxes".