Taxes for Housing Allowance
I want to make sure I am understanding this correctly. Our pastor is going to get $1000/month in housing allowance. With his approval on the w-4, we can withhold from his check the $153.00/ month he would owe for his self employment social security tax. Then at the end of the year the church would cut him a check for amount withheld so that he can use that money to pay his taxes. Correct??
Know the answer? Face the same situation? Please post your answer or comment by using the "comment" link below. Thank you!