W-2 for Pastors

Do we issue W-2's to pastors if they do not have any tax taken from their checks? And if this is the case how do you report it on the 941 form so that it matches the W-3?

Answer

If they are an employee of the church, you would report their income on a W-2 form.

However, if you are not
withholding any income tax from your pastor's paycheck, you would not file a 941.

If no income tax was withheld and sent in on quarterly 941 forms or no other benefits were paid, you would simply report his wages in box 1 and box 16 on a W-2.

Hope this helps,



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