Can a church withhold tax for the clergy-pastor?
Can a church withhold tax for the clergy?
Yes. The church can withhold income tax, but not Social Security and Medicare tax.
A minister is responsible for paying the Social Security and Medicare tax himself. He can pay this tax by making quarterly estimated tax payment, or by requesting the church to hold out extra income tax.
The minister who is considered a church employee must complete a form W-4 and request that a specific amount be withheld from each paycheck.
For example, if a minister estimates that his combined income and self-employment tax for the year will be $9600. He can request that the church withhold $800 of income tax from each month's paycheck.
Even though the minister can only elect withholding of income taxes, he can use these tax payments against both income and self-employment tax since they are added together on his personal income tax return (Form 1040).
*Important: You cannot withhold taxes from ministers' pay without 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.
Yes. The church can withhold income tax, but not Social Security and Medicare tax.
A minister is responsible for paying the Social Security and Medicare tax himself. He can pay this tax by making quarterly estimated tax payment, or by requesting the church to hold out extra income tax.
The minister who is considered a church employee must complete a form W-4 and request that a specific amount be withheld from each paycheck.
For example, if a minister estimates that his combined income and self-employment tax for the year will be $9600. He can request that the church withhold $800 of income tax from each month's paycheck.
Even though the minister can only elect withholding of income taxes, he can use these tax payments against both income and self-employment tax since they are added together on his personal income tax return (Form 1040).
*Important: You cannot withhold taxes from ministers' pay without 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.
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