Witholding Tax credit?
There is a tax credit for churches if you pay in witholding tax. We have not paid witholding tax in the past, but we were told to start witholding from the Pastor's payroll, so we can get a tax credit back up to $4000. Would this put the Pastors status in jeopardy or raise a red flag for audit? My understanding is that if you are required to pay witholding , then you qualify - but should we start doing it anyway, if I can save the church money or is the hassle not worth it - would it trigger audits for past years?