Local Church Tax Topics

W-2 and other tax info

Download the letter from the annual conference with guidance on end of year tax and W-2 preparation for local churches. This is a sample from 2019.

Download the IRS instructions for the 2021 W-2

Download a document from Wespath Benefits and Investments with guidance on how to treat withholdings and contributions to health reimbursement accounts on the W-2. 

Payroll Tax Withholding

Because clergy serving as pastors of local churches are exempt from income tax withholding and are treated as self-employed for Social Security and Medicare tax purposes, the IRS has ruled that local churches with no lay employees are not required to file IRS Form 941 unless their clergyperson has requested voluntary income tax withholding. A letter from the IRS confirming this ruling is available below.
IRS Form 941 -  Minister Exemption Letter




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