NTS Home Page Frequently Asked Questions
How does NTS report the Pastor's payroll on the 941 Form?

Based on guidelines from the IRS, the pastor's salary should be included on Forms 941 and W-2. NTS reports the pastor's income on Forms 941 and W-2 based on these guidelines. On Form 941, the pastor's income should ONLY be included on line 2 and not on line 5. Only non-ministerial employees' salaries should be reported on these lines. If you have been reporting the pastor's income on these lines, you may not be required to report it that way any more.

The same is true for Form W-2. The pastor's income should not be reported as FICA and/or Medicare wages. See the illustrations below.

Your pastor's tax situation may be different. However, if you are unaware of any unique circumstances regarding your pastor's tax situation, the above guidelines will generally apply. Contact a local tax advisor or your district office if you need further assistance with how to report your pastor's salary or if you are unsure of your pastor's tax situation. The links below also have good information.
For more information see:
Nazarene Pensions and Benefits USA - Tax Helps Memo #3 - Tax and Reporting Procedures
(By clicking on this link you will leave the NTS web site.)
Pensions and Benefits USA - Taxes and Compensation (See side bar for links.)
Disclaimer:
The information contained in this web page is of a general nature. It is not offered as specific legal or tax "advice." Each person, local church, and district should evaluate their own unique situation in consultation with their local legal and tax advisors. We are not responsible for the accuracy of information on other web sites including sites linked to from this page.
Form 941 which includes the pastor's salary
Pastor's W-2

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