MUST HAVE REFERENCE GUIDE

Site Map or Site Search

CHURCH ACCOUNTING PACKAGE

Withholding Taxes and 1099 or W-2?

by Cindy
(Metroolis, Ill.)

My husband and I co-pastor a small church, under 50. We receive 12,000/ year. We are bi-vocational and have our SS, medicare and taxes withheld at a a higher rate at our jobs. Is the church required by law to do withholding? Should the church give us a 1099 or a W2? We have conflicting information. We also paid self employment taxes last year. Thanks.

Comments for Withholding Taxes and 1099 or W-2?

Click here to add your own comments

Jan 07, 2013
 pastor income
by: Anonymous

the church in most cases give out W-2's for pastors, they do not withhold taxes if they are a "qualified church". see IRS.gov for more information. You might also look into the IRS publication 15 series to help clarify what is allowed and how to comply with regulations. Don't take peoples word for things you can find out for yourself, kinda like making sure you read the bible instead of just listening to people who claim they know... :0)

prayers

Click here to add your own comments

Join in and write your own page! It's easy to do. How? Simply click here to return to Clergy Tax Q&A.

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 =)



Share this page:
Enjoy this page? Please pay it forward. Here's how...

Would you prefer to share this page with others by linking to it?

  1. Click on the HTML link code below.
  2. Copy and paste it, adding a note of your own, into your blog, a Web page, forums, a blog comment, your Facebook account, or anywhere that someone would find this page valuable.