Question: Should a church should withhold taxes from a pastor ?

by Darle
(North East,Md.)

Some sites say a church needs to withhold taxes, except FICA, from a pastor wages. Some sites say not to. Some sites say a pastor has to request taxes withheld. Which is correct? I gave our pastor a W4 to fill out when he first came and he has never returned it, is this something I need to do again to keep it in the church records?
Thank You.

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Apr 06, 2012
by: Sandra

You need to review IRS Pub's 15 series and pub 517. My understanding is the church does not withhold unless the pastor turns in a w4 requesting it. The w2 has his income in line 1 and his housing in line 14 for their information in filling out their tax forms. Our church does not withhold taxes.

Apr 06, 2012
Withhold Taxes
by: Anonymous

Thank you. This is the way I thought it is done, but wanted to make sure.

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

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