If a church has any non-minister employees, the church must withhold income tax, Social Security tax, and Medicare tax from the employees’ paychecks. Even if the church only has minister employees the church may still have to withhold income tax if the minister has elected voluntary income tax withholding on his Form W-4. Church Payroll Software. As a result most churches will be required to withhold payroll taxes and remit them to the IRS.
The book answers each of the following questions:
- Does the church withhold tax from employees’ paychecks?
- How is payroll tax withholding computed?
- Does the church have to match FICA tax?
- How much can an employee make before the church has to withhold taxes?
- How does the church pay its payroll taxes?
- Do churches have to pay state or federal unemployment taxes?
Church Payroll Tax Forms
Churches are often confused by the complexity of payroll tax forms and filing requirements.
The book answers each of these questions:
- What is Form 941?
- When does the church file Form 941?
- How is Form 941 prepared?
- What are Forms W-2 & W-3?
- When are Forms W-2 & W-3 due?
- What are Forms 1099 & 1096?
- When are Forms 1099 & 1096 due?
The book also answers your questions about tax exempt status for churches.
TAX EXEMPT STATUS
Churches need to know what the meaning is and requirements for tax exempt status. There is much confusion and misinformation concerning this topic.
The book answers each of the following questions
- Do churches need to file for tax-exempt status with the IRS?
- What is IRC Section 501 (c)(3)?
- Do churches have to file annual income tax returns?
- What is a Form 990/990-EZ?
- What other types of tax may apply to churches?