Ok, I've read that if a church pays a Pastor's 50% of SS and Medicare, that must be added to there income because they are considered self employed. However, if the church has employee, 2 of which are ordained and occasionaly preach, does their 50% paid by the church need to be added to income?
Church employees
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Ok, the more i research the answer is yes the half the church paid is taxable income. If so, thinking, corrected w-2's should be filed because if fixed on tax return, it won't match irs records unless the additional 50% is shown on scedule c and the church can gross that up on the w-2 next year???? Any ideas? -
When the church pays it, the money just goes to them or what's called "federal withholding" not paid on 941 which is FICA, right? All their wages are exempt wages on 941 right?Comment
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Not exactly following what you are saying. I thought you were saying the church paid the FICA on the 941. If it is giving them the $$$, it is just more income on the W-2. Only wages subj to SE on the 941 would be church employees (not ministers.) All ministers are exempt wages for FICA. Some might have withholding for federal purposes shown in Box 2 on W-2 and this would show on the 941 under federal withholding tax.Last edited by Burke; 03-09-2013, 04:03 PM.Comment
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