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Why Church Employees Should Review Their W-4 Forms Annually

December is a great time for church employees to review their W-4 forms to ensure proper tax withholding. Changes in income, dependents, or expenses can impact tax liability, making updates essential.

Richard R. Hammar, Attorney, CPA
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Last Reviewed: January 29, 2025

December is a good time to check with all nonminister church employees to see if they need to file a new W-4 form with the church.

The W-4 form is used by employees to report withholding allowances. This information will determine how much income tax the church withholds. 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. voluntary withholding of their taxes.

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