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UI Steps


UI Step

Option 1: Estimated Taxes

     The minister pays federal income taxes and social security taxes (SECA) directly to the IRS. form 1040-ES is filed by the minister on 4/15, 6/17, 9/16, and 1/15." 


Image result for form 1040 es




UI Step

Option 2: Voluntary Withholding

     The church withholds federal income tax and pays quarterly to the IRS. Additional federal income tax may be withheld to cover the minister's social security tax (SECA) liability.

Info
titleRelaint files 941 forms and provides W-2 forms to employees

This Option requires two things from the Employer (Church/Ministry) the Minister is employed by:

  • Requirements #1: Forms 941 filed with the IRS quarterly by the church.  

  • Requirement #2: The W-2 is provided to the minister and the IRS.
  • These requirements are both fulfilled by Reliant as the "church" that is paying the Minister's wages.  Reliant files the 941 for all Reliant employees with the IRS and sends out annual W-2 forms to employees.


Tip
titleRequesting Extra Federal withholding

Some Ministers find it helpful for Reliant to withhold extra Federal withholding taxes that they then then apply towards their SECA tax liability when they file  their taxes.  To withhold extra Federal taxes they complete the W-4 form as normal with lines 1 through 5 per their "normal" settings and then on line 6 add the extra taxes they want withheld in addition to theeir normal Federal taxes. Please be aware line 6 is "in excess of the normal taxes" so, for example, if someone's "normal" Federal settings are married with 4 allowances and they typically see $200 withheld for Federal taxes, if they put "$400" on line 6 that person would see a toal of $200 + $400  $600 withheld from their paycheck as Federal taxes. 


To calculate what amount to use for line 6 on your W-4 form, you can....

1. Estimate the amount by doubling your FICA bonus.  Thye tends to be a little high of an estimate and circumstances Circumstances vary, but some misisonaries find that to be an adequate estimate for their withholding needsthis method tends to be accurate although potentially slightly higher than needed, which then yields a tax refund for the minister when they file their taxes.  

2. Seek counsel from a tax advisoradviser

3. Contact payroll@reliant.org for a educational consultation.  Reliant cannot advise you on your tax witholding withholding but we can assist with you in your calculations by helping you with some personalized estimates that you can utilize use to determine the appropriate amount for line 6.    Image Removed

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(“Chapter 7 - Paying Taxes.” Zondervan 2019 Minister's Tax & Financial Guide for 2018 Tax Returns, by Daniel D. Busby et al., Zondervan, 2019, p. 114.)








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