Quarterly Reports

by Sue Prime
(North Kingsville,Ohio)

The pastor at this small Presbyterian Church is a Commissioned Lay Pastor hired by the church Session. As the treasurer for this church, I prepare a W-2 for the pastor along with W-2s for the three other employees. I have been preparing the W-2s on-line and submitting them on-line. The program picks up the total of all the income of the employees and the pastor and the IRS thinks the church underpaid because of the pastor's salary being included. I have been going round and round with them explaining that the pastor has paid the money they are saying the church owes as he is considered self-employed. On line 1 of the 941, I put 4 which includes the pastor. Online 2 I put the total of all 4 salaries. On line 5a I put the total of the 3 employees salaries excluding the pastor's salary and calculate the the SS and MC withholdings using that number. On the year-end submittal form there is no place for that line 5a total and it just automatically totals the line 1 figures. Now the IRS thinks we didn't pay the right amount of withholding. Am I doing the quarterly reports or the year-end report wrong?? I cannot find an answer to this question anywhere. Sue

Comments for Quarterly Reports

Click here to add your own comments

Apr 24, 2014
941
by: em

I am trying to complete form 941. There is no other person who receives pay at our small church. Pastor is the only one who receives salary. So Line 1- would i list him as an (1) employee? Line 2- $0.00 for wages because pastors wage is not included?

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 Employee.

Need a Consultation, help setting up an effective Accounting System, or someone to do your monthly bookkeeping?