close up image of W-4 form
Image: Getty / NadyaPhoto

Annually Reviewing W-4s for Church Employees

An annual review of W-4s by church employees can best address changes affecting their tax situations.

Richard R. Hammar, Attorney, CPA
Bio

Last Reviewed: January 4, 2024

Q: Should our church ask each employee to fill out a new Form W-4 each year? If so, why?

The W-4 form is used by employees to report withholding allowances. This information will determine how much income tax the church withholds from the wages of a nonminister employee.

The important point is this—W-4 forms often become obsolete because of changes in an employee’s circumstances, but the employee fails to submit a new form to the church. This can result in withholding that is significantly above or below the actual tax liability.

Here are some reasons why an employee’s W-4 may need to be updated
  • the birth of a child
  • a pay raise
  • a divorce
  • significant medical expenses.

Tip: These same considerations apply to ministers who have elected “voluntary withholding” of their taxes. Also, note that the tax cuts passed by Congress in recent years have reduced taxes for most Americans, and this is another reason why church employees should periodically review their W-4 form.

Richard R. Hammar is an attorney, CPA and author specializing in legal and tax issues for churches and clergy.

This content is designed to provide accurate and authoritative information in regard to the subject matter covered. It is sold with the understanding that the publisher is not engaged in rendering legal, accounting, or other professional service. If legal advice or other expert assistance is required, the services of a competent professional person should be sought. "From a Declaration of Principles jointly adopted by a Committee of the American Bar Association and a Committee of Publishers and Associations." Due to the nature of the U.S. legal system, laws and regulations constantly change. The editors encourage readers to carefully search the site for all content related to the topic of interest and consult qualified local counsel to verify the status of specific statutes, laws, regulations, and precedential court holdings.

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