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How to Prepare W-2s for Church Employees, Including Ministers

Last-minute help for completing these important forms.

How to Prepare W-2s for Church Employees, Including Ministers

Churches need to report each employee's taxable income and withheld income taxes as well as Social Security and Medicare taxes on Form W-2, and furnish copies B, C, and 2 of the 2019 Form W-2 to each employee by January 31, 2020. Copy A should be submitted to the Social Security Administration by January 31, 2020, along with Form W-3, Transmittal of Wage and Tax Statements.

If your employees give their consent, you may be able to furnish Forms W-2 to your employees electronically. See IRS Publication 15-A for additional information.

Although W-2s are not difficult to prepare, there are some tips you should know.

First, be sure to add cents to all amounts. Make all dollar entries without a dollar sign and comma, but with a decimal point and cents. For example, $1,000 should read "1000.00." Government scanning equipment assumes that the last two figures of any amount are cents. ...

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

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Posted:
  • January 28, 2020

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