W2 vs 1099 Pastor salary

by Lorna Linton-weller
(Lakeland, Florda -USA)

I have a 1099 for our pastor, where do we put his salary?

I put is medical helath insurance in Box 6 and his housing allowance in box 7, where do i put his salary, we do not witheld federal income tax.

What is the draw back if we withheld federal income tax. He is now 61 or 62, 2011 May...He worked a reg. job for the past 41 years, and retired about 3 years ago.

Please advised which process is better for both the church and the pastor.


Comments for W2 vs 1099 Pastor salary

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Feb 28, 2011
1099 Are Not For Employees
by: Vickey

A 1099 is not the right IRS form to report employee's wages and benefits.

I am assuming your pastor is an employee of your church as only an employee of a church can receive a fringe benefit such as health insurance. See this page for more details on fringe benefits.

You would report their wages in box 1 and 16 (if state tax is applicable) and the housing allowance and health insurance premiums in box 14.

If you do not consider him an employee and need to issue him a 1099 then all wages and insurance premiums would go in box 7 and you would report his housing allowance on a separate statement issued on church letterhead and sent only to the pastor.

You can only withhold income taxes from ministers' pay with the minister's authorization. Ministers are exempt from income tax withholding whether they report their income taxes as employees or self-employed; ministers who report their income taxes as an employee can request voluntary withholding by submitting a Form W-4 to the church.

Apr 15, 2012
W-2s for Pastors
by: Rob

I've read on other sites that Pastors are required to receive a W-2 instead of a 1099-MISC. I'm confused. How do I find out for sure which it is?

Feb 09, 2020
Ass. Pastors and Youth Pastors
by: Anonymous

If they only receive a housing allowance and not a salary would it also be noted in box 7?

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