by Laura
(Spotsylvania Va)
When completing the tax form 944 does the church pay medicare and Social security for the pastor even though nothing comes from his check?
vickey's reply
No. Ministers do not pay their social security tax through the FICA system (what you are referring to) but through the SECA system (minister pays his own self-employment tax). See this post.
Make sure you check that box in line 3 (on a form 944) to show your pastor is exempt.
2Comments
Form 941 or 944
VVickey
A 944 is intended for businesses or churches with an annual employment tax liability (Medicare, Social Security, withheld federal income taxes) of $1,000 or less.
BUT the ONLY way you can file a 944 form is if the IRS notifies you in writing that you are eligible to file Form 944.
You can request to file a 944 IF you have withholding of a $1000 or less in a year...but till you are approved to use a 944 you must file a 941.
BUT the ONLY way you can file a 944 form is if the IRS notifies you in writing that you are eligible to file Form 944.
You can request to file a 944 IF you have withholding of a $1000 or less in a year...but till you are approved to use a 944 you must file a 941.
Question: 944 or 941?
AAnonymous
How do you know when your church should file a 944 (once a year) rather than a 941 (quarterly)? This is our first year with a pastor who is our only staff person.