Need to File a 941 If Only Paying a Housing Allowance?

by Robert
(Ada, MI)

Our small church only has one employee and his total compensation is designated for "housing allowance". Does the church need to file a Form 941 to report the HA paid to the minister each quarter/year? And does the church need to issue a W-2 form to the minister showing how much HA in box 14? The minister is also exempt from Soc Security (has filed an approved 4361 form).


No. You do not need to file a 941 unless you are withholding federal/state income tax for him.

You would put it in box 14 of his W-2 or just include the amount in a letter from the church.

Hope this helps,

Church Accounting Package

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Mar 26, 2010
How to handle reporting for housing allowance
by: Marcus in Texas

Please see the link shown below. Vickey answered this same question back in 2009.....

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