2033-07 Clergy Withholding - Voluntary - ZZeod

"EDITED ONLINER DIALOGS"


TOPIC:  Clergy Voluntary Tax Withholding Issues                                                            ORIGINATED  August 22, 2002

TOPICAL OVERVIEW:  A  Pastor asks the Church to withhold an amount of their choosing from their periodic pay check  This enables them to have money to pay their quarterly Income Tax estimate payments required by self employed tax payers.

FILE: 2033-07                                                                                                                                                         UPTDApril 28, 2008


Via Onliner #1 --
 
        My Pastor wants us to withhold  $ xxx.xx out of each pay check for Social Security and to pay it to him quarterly.   Do I just reduce his salary by $ xxx.xx  via the QBooks payroll process , then issue him a 1099 for the amount paid to him quarterly?  

Via Onliner #2 --
       
        I do something  like that for my Pastor.  I set up a QBooks  liability acct called "Pastor XX Trust Fund"  and a payroll item for it as well in QBooks.  That way the full amount properly shows up as part of his gross salary.  We are just accommodating him so he does not see it, etc..  Then I just write a check out of that account to either him or the taxing authority when he asks for it.

   
Via   Jim@bcidot.org  

        Plse reference  0037  and   0016  where matters like this are covered.  Issues include:
 
        1>  Like Onliner #2 says,  a voluntary withholding (for whatever purpose)  takes place and a Pastor uses it as they see fit.
        2>  Personally,  I like the idea  expressed in 0016 above ( or is it 0037??)  where the said amount is withheld and paid with the  Federal Income Tax of regular employees  ... it then shows up on the Pastor's annual W-2
(although I understand that form 1099 can now involve tax withholding these days.  I would prefer this since it is then clearer that the Clergy are NOT Employees, etc)

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