Hello, my name is Ian Hughes. I'm the accountant for the Disciples regional office in Newton, Iowa," said Christian Church in the Upper Midwest. Today, I'm here to talk to you about ministers' W-2s. First, my disclaimer: this video is for informational purposes and is not intended to be relied upon as comprehensive instruction on completing W-2s. Please consult your tax advisor for this information. I often get a lot of questions about how to complete W-2s for ministers, and there's a lot of uniqueness to ministers in how it is reported. The first thing you should know about ministers is that they are considered dual status employees. They are treated as employees for income tax purposes and for any other tax situations that involve the relationship between a business and an employee. They are subject to the same rules as far as university and business expenses, as well as concerning health insurance, pension funds, and anything else. They are considered employees just like any other employees. What is unique about ministers is that they report their Social Security and Medicare taxes as if they are self-employed individuals. This income is reported on their individual tax return, rather than being withheld from their paycheck like other employees. They report and pay for that tax on their individual tax return. Ministers' W-2s often look different because of their dual status. They will not have any amounts in three for Social Security wages, and they will not have any amounts in five for Medicare wages. These es will be zero, same for es four and six for withholdings for Medicare and Social Security taxes. They will have an amount in one for wages, and in one, you would report any payments to them for their base rate for Social Security and offset any payments that...
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Clergy 1099 or w2 Form: What You Should Know
Pastor, not a self-employed person. However, if you know that you're paying your pastor a fair salary, and they use a Form W-2, it is important to get paid properly. A form W-2 cannot be issued unless you give at least 90 days notice of your intent to terminate your employment with your church. So if your pastor had a severance agreement with you, you should still send them a W-2 form to show intent to end your employment. Note: Pastors have no income tax deduction for their Ministerial Salary. In general, no matter how you choose to report your tax information on your W-2 form, the IRS will not look back to your pastor's W-2 form to determine your employer's eligibility for deductions. However, if you are under the age of 49, you will need to complete a CPA letter for the Church with proof of your Social Security Number. The letter should be sent to the church office located at IRS.gov or to IRS. Mail to: Internal Revenue Service Attn: Charities and Trusts, 1014 South Capitol Street, S.E. Washington, D.C. 20424. Include a self-addressed stamped envelope, date, and phone number. If you're thinking about receiving a W-2 form from your church, it would be much preferable for you to be paid on an average weekly basis as that is a good benchmark for your church's earnings. If you are paid on an average weekly basis, then all you will receive from the church is weekly W-2 slips that can be filed electronically in the next year. However, if you are paid monthly, then make sure to report the amount that is for your income and your expenses by filling out each Form W-2 with the tax software used.
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Video instructions and help with filling out and completing Clergy 1099 or w2
