Taxes in the United States are complex and consequences for noncompliance can be significant. Furthermore, there are nuances in the tax laws as they pertain specifically to churches and clergy. This material is intended to introduce parish treasurers to and assist them in meeting their church’s federal income and employment tax responsibilities.
As noted, taxes are complex. The information provided here should be viewed as introductory and not as a substitute for professional tax advice on the law itself.* In addition, state and local tax issues must be addressed locally because those laws vary by jurisdiction.
This guide has been provided by the OCA Pension Board.
* This publication is distributed with the understanding that the author and distributor are not rendering legal, accounting or other professional advice on specific facts or matters, and, accordingly, assume no liability whatsoever in connection with its use. *
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Initial Considerations for a Parish
a) IRS group tax exemption
b) Employer Identification Number (“EIN”)
c) Sales tax exemption
d) Other tax exemptions
e) State payroll registration
Employer Responsibilites
a) Federal and state wage and hour laws
b) Employee vs. Independent Contractor
c) Form 1099
d) New Hires
e) Income Tax Withholding
f) Social Security Taxes
g) Unemployment Taxes, Workers Compensation, Disability Insurance
h) Annual W-2 Reporting
Clergy Payroll
a) “Dual” status employees, Self – employment tax
b) Minister Housing
c) Equity Allowances
Sample Forms and ReferencesAll forms are available in PDF format.
Other ResourcesReferences and contact information.
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