Do we issue W-2's to pastors if they do not have any tax taken from their checks? And if this is the case how do you report it on the 941 form so that it matches the W-3?
Answer
If they are an employee of the church, you would report their income on a W-2 form.
However, if you are not
withholding any income tax from your pastor's paycheck, you would not file a 941.
If no income tax was withheld and sent in on quarterly 941 forms or no other benefits were paid, you would simply report his wages in box 1 and box 16 on a W-2.
Hope this helps,
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3Comments
Reporting church provided parsonage and paid utilities on a pastor W2
AAnonymous
church provides parsonage and paid utilities for pastor. How is it reported on the W2?
Only receive housing allowance
AAnonymous
If the Pastor only receives a housing allowance; is it ok to just report that in box 14 on the w2?
Pastors should receive W-2
PPaul
Everything I've learned from accounting for churches indicates that generally pastors should receive a W-2 from the church, even if no tax is withheld.