We are a brand new church. we only pay a pastor for housing allowance.
In this case, how can church report social tax (medical tax) for pastor?
or
can pastor report it (pay it) for himself next tax season?
If church want to pay half social tax, how can church do it? we never pay any tax to IRS until now.
1Comments
Housing Allowance is Nontaxable Income in regards to Income Taxes
VVickey
A minster can request voluntary "income tax" withholding; however, you cannot withhold it from the housing allowance as it is exempt from income tax.
The church can pay a SECA (Social Security) allowance, but it IS taxable income as must be reported in Box 1 of their W-2.
Don't forget that you cannot withhold or match FICA taxes on a minister.
The church can pay a SECA (Social Security) allowance, but it IS taxable income as must be reported in Box 1 of their W-2.
Don't forget that you cannot withhold or match FICA taxes on a minister.