Is it correct for church to leave box 3 on W-2 blank?

by Curt
(Michigan)

Is it correct for church to leave box 3 on W-2 blank?


If so, when Social Security Admin computes and average 35 highest years of "wages" and if Box 3 on the W-2 is blank, then how does the SSA compute one's soc sec payments? What do they count as "wages?" Is simply the amount per year we've paid to FICA?

This is important because by allocating more money from clergy pay package to tax sheltered annuity (pre-tax dollars paid by clergy) and pension fund paid by church, and lowering the housing allowance by maximizing TSA and pension payments, this all has the cumulative effect of lowering your social security tax paid per year.

This MAY also have the unintended consequence of resulting in lower soc sec payments at time of activating soc sec payments to you.

Are we better off reducing soc sec per year by increasing TSA and denominational pension payments per year or better off paying higher soc sec FICA taxes per year (by lowering TSA, pension payment + raising amount of housing allowance and salary paid to clergy?

Thanks
Curt


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Comments for Is it correct for church to leave box 3 on W-2 blank?

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Feb 28, 2011
Minister's W-2
by: Vickey

If you are classified as a minister for tax purposes, then yes...box 3 on your W-2 should be left blank.

The Social Security Administration computes your SS benefits from your "self-employment" income as well as "regular" wages.

As far as maximizing TSA and pension payments, you should consult a tax professional for expert advice.

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