Pastor's salary

by Darlene
(North East Md)

We are a small church and I have been treasurer for about one year. We recently got a new pastor. Are we responsible to take out taxes on him or is he responsible for his own taxes, like our previous pastor was?

Vickey reply:
Yes, technically he is responsible for his own taxes; however, ministers who report their income taxes as an employee can request voluntary withholding by submitting a Form W-4 to the church.

Also...remember...if your pastor is considered an employee of your church (most of the time pastors are considered employees) you will need to complete a W-2 form...whether you hold taxes out or not.

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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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