by Carrie
(Hannibal, MO)
The church paid the pastor $20,000 in wages and $10,000 in housing allowance. $1000 was withheld from the pastors wages and put in a 403(b) plan leaving salary of $19,000.
Please advise us on how to complete the pastor's W-2.
Should $19,000 go in box 1 of the W-2?
Will the $1,000 go in box 12 with the code E?
Will the pastor need to pay SECA tax on the $1000 403(b) on his tax return? I can't find this anywhere. Other "employees" with 403(b)contributions are subject to SS/Med tax on their 403(b) contributions.
Thank you for your assistance,
Carrie
2Comments
W2 is accurate
GGB
Hi, I'd agree that your w2 construction is correct as you've indicated. $19k gross wages (box 1), $1k housing allowance (box 14), 403(b) designated code E.
I also agree that the savings are FICA & MED taxable.
I also agree that the savings are FICA & MED taxable.
pension on w-2
SSandi
It depends on how the church did the transactions...
go to:
http://www.irs.gov/uac/Publication-15-(Circular-E),-Employer's-Tax-Guide
scroll down to the table and find:
Retirement and pension plans(if you open the pdf instead of the html it is on page 40)
hope this helps
Prayers
go to:
http://www.irs.gov/uac/Publication-15-(Circular-E),-Employer's-Tax-Guide
scroll down to the table and find:
Retirement and pension plans(if you open the pdf instead of the html it is on page 40)
hope this helps
Prayers