by Josh Reeser
(Logansport IN )
Does the Housing Allowance belong anywhere on the 941 Form?
Vickey's Reply:
NO. Do not include housing allowance payments on the 941 form. The only place you will report housing allowance compensation is in Box 14 on their W-2...or in a letter from the church.
2Comments
Don't Include Board Approved Housing Allowance Payments in Form 941
VVickey
Yes, you will need to subtract any "approved" housing allowance payments from a minister's total compensation before reporting amount in a quarterly 941 form.
For example, you pay your minister $4000 per month and $2000 of that $4000 is a properly setup and approved housing allowance. Then you would report $2000 X 3 = $6000 on line 2 of your 941.
If the minister is the ONLY employee, you would check the box on line 4 and skip to line 6.
If they are not, you would NOT check that box, BUT in lines 5 a-d you would report your total employee wages MINUS the minister's wages MINUS the housing allowance=)
For example, you pay your minister $4000 per month and $2000 of that $4000 is a properly setup and approved housing allowance. Then you would report $2000 X 3 = $6000 on line 2 of your 941.
If the minister is the ONLY employee, you would check the box on line 4 and skip to line 6.
If they are not, you would NOT check that box, BUT in lines 5 a-d you would report your total employee wages MINUS the minister's wages MINUS the housing allowance=)
941 and Housing Allowance
MMary Ann
Do I need to subtract the HA from wages before recording it on the 941?