Q&A: The Ins and Outs of Form 941
Q&A: The Ins and Outs of Form 941
Is a church with only one employee who is a minister required to file this form?

Should a church with no nonminister employees and only one minister file the quarterly 941 form (employer's quarterly federal tax return)?

Form 941 reports the number of employees and amount of Social Security and Medicare taxes and withheld income taxes that are payable. Form 941 contains a box on line 4 that is checked if wages and other compensation are not subject to Social Security or Medicare tax. This box should be checked if your church filed a timely Form 8274 with the IRS, exempting itself from the employer’s share of Social Security and Medicare taxes.

Clergy wages

The wages of ministers who report their income taxes as employees are reported on line 2 along with the wages of nonminister employees. Do not include a minister’s housing allowance on this line, since it will not be reported on the Form W-2 issued to the minister. However, ministers’ wages are exempt from tax withholding, so no amount will be entered on line 3 with respect to minister employees unless they have elected voluntary tax withholding.

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Posted: September 6, 2019
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