More W-2 Tips

A W-2 form must be issued to any employee (including ministers) who received compensation from the local church during the previous tax year. In completing the forms, here are a few tips to remember:

  • The W-2 forms must be completed and issued to each employee by no later than January 31. The employer/church must then make sure that they submit to the Social Security Administration “Copy A” of each W-2 form and the W-3 transmittal form by no later than the end of February.
  • You can obtain blank W-2 forms from your local IRS office, your local post office, or by calling the IRS toll-free forms number (1-800-TAX-FORM).
  • All dollar entries on the W-2 should be made without dollar signs and commas, but with a decimal point and cents. For example, $1,000 should read as “1000.00.” If you put down 1000, the IRS scanning equipment will read that as $10.00 – so make sure that decimals and cents are used.
  • If a box on the W-2 does not apply, leave it blank. Do not insert “0” or “N/A.”
  • Make sure that you use the correct employer identification number (EIN) for the church/employer. This is critical especially if you have more than one entity (such as a church school) operating under a similar name.
  • In identifying employees on the W-2 (Box e), do not include titles, such as Rev., Mr. or Dr. Also, do not include suffixes such as Jr. or Sr.
  • Make sure that the ministerial housing allowance or the fair rental value of the parsonage is not included in Box 1 wages.
  • Check the retirement box in Box 13 only if the minister or church-related employee participates in a recognized retirement plan, such as the Ministers’ Retirement Plan.
  • Make sure the ink on the W-2 is not too faint, and that the writing is legible and not too small.
  • If you need additional assistance in completing the W-2 form, do not hesitate to contact the Benefits Board for general information or for specific information, you may call the IRS directly at 1-866-455-7438 for assistance.

About benefitsboard

Art Rhodes is the President and CEO of the Church of God Benefits Board, Inc. - the administrator of the Ministers' Retirement Plan and the Church Loan Fund, Inc. The corporate offices of the Benefits Board are in Cleveland, TN.
This entry was posted in 01 - January 2014, Form W-2. Bookmark the permalink.

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