Create a W2 for a Youth Pastor whose only compensation is living in church parsonage

by Katherine

Hi, Our Financial Secretary died suddenly and I am trying to do the W2's forms for 2016.

I am not sure how to proceed with creating a W2 form for our youth pastor.

He is NOT an ordained minister. He receives no pay, his salary is living for free in the church apartment. He doesn't pay any utilities.

We are in Pennslyvania, the use of the personage is subject to state income tax.

When I create a W2 form,, I am enter "0.00" in Box 1 (Federal) and "10,800" in Box 16 state wages.

The Social Security Web page gives me an error message. That I must have an amount in boxes 1 to 7. I also tried just putting the amount in Box 14 (Other). Still getting error message!

I would appreciate any help!!


Katherine in PA

Comments for Create a W2 for a Youth Pastor whose only compensation is living in church parsonage

Click here to add your own comments

Jan 11, 2017
Contact a CPA or Tax Professional
by: Vickey

There are too many variables for any of us to give you an answer.

Please contact a PA CPA or Tax Professional that is familiar with church tax laws on PA.

If you can't find one, contact Bill OConnell with

If he can't help you, he will be able to tell you who to contact for the right answer.

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's W-2.

If you want to DIY your payroll, I highly recommend you look at using Gusto! It is very user friendly and their support is awesome! Plus they know how to set up and maintain payrolls for churches and nonprofit organizations.

Note: I am a "partner" of Gusto, but as I have told you before ... I never recommend anything that we or our clients have not tried and love =)

Share this page:
Enjoy this page? Please pay it forward. Here's how...

Would you prefer to share this page with others by linking to it?

  1. Click on the HTML link code below.
  2. Copy and paste it, adding a note of your own, into your blog, a Web page, forums, a blog comment, your Facebook account, or anywhere that someone would find this page valuable.