Does the Housing Allowance belong anywhere on the 941 Form?

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.

Comments for Does the Housing Allowance belong anywhere on the 941 Form?

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Sep 13, 2018
941 and Housing Allowance
by: Mary Ann

Do I need to subtract the HA from wages before recording it on the 941?

Sep 13, 2018
Don't Include Board Approved Housing Allowance Payments in Form 941
by: Vickey

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=)

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Join in and write your own page! It's easy to do. How? Simply click here to return to Housing Allowance.

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 =)

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