Should that amount be be included in his w-2 wages?
3Comments
Cannot Withhold and Match FICA Taxes for a Minister
VVickey
A minister is considered to have a "dual status" with the IRS. Please see more on that here: https://www.freechurchaccounting.com/ministers-taxes.html
OR click on "Resources" in the top menu bar and go down to "Minister Taxes".
If you want "IRS" documentation on why a church CANNOT withhold and match FICA (Social Security and Medicare) taxes for a minister, see their "audit" guide: https://www.irs.gov/pub/irs-utl/ministers.pdf
OR click on "Resources" in the top menu bar and go down to "Minister Taxes".
If you want "IRS" documentation on why a church CANNOT withhold and match FICA (Social Security and Medicare) taxes for a minister, see their "audit" guide: https://www.irs.gov/pub/irs-utl/ministers.pdf
Clergy Medicare payment
Llewis robbins
The church pays Medicare directly on behalf of the pastor.
Need More Information
VVickey
Not sure what you mean by the church "pays" the minister's medicare tax?
Please give us a little more detail. For example, some churches give their ministers a SECA allowance to help cover the self employment taxes that most ministers have to pay on their compensation.
It is completely taxable and must be included in Box 1 of the minister's W-2.
Please give us a little more detail. For example, some churches give their ministers a SECA allowance to help cover the self employment taxes that most ministers have to pay on their compensation.
It is completely taxable and must be included in Box 1 of the minister's W-2.