treated pastor's pay as regular wage & filed 941

by egd
(nevada)

My husband & I started a church years back & in 2020 we decided that he should start receiving a small salary

To make long story short, we took out fica & federal withholding from his paycheck treating it just like regular wages & filed 941 quarterly & w2 & w3 at the end of the year.

Our tax preparer informed us that we should not have taken out fica taxes because that is being handled when we file our income tax.

How do we correct the w2 & w3 & the 941 filed to claim a refund? i would appreciate your help. thank you very & God bless.

Comments for treated pastor's pay as regular wage & filed 941

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Mar 29, 2021
Filing Amended Returns
by: Vickey

Your tax preparer is correct. Ministers are paid through the SECA system, not the FICA system.

See more on that by clicking "RESOURCES" at the top of this page in the top navigation bar. Then click on "MINISTERS TAXES" then down to the article:(Minister) Clergy Tax

In regards to filing the amended 941s and W-2s, my advice is to hire a CPA firm to do that for you as the 941x is a difficult form to complete.

I don't offer that service, but I can recommend the Ministry CPA: https://www.ministrycpa.org/services/ministries-non-profits

A local CPA firm may be able to help as well, but make sure they understand the dual status of ministers.

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Join in and write your own page! It's easy to do. How? Simply click here to return to IRS Form 941.

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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