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Should churches withold Fed tax...

Discussion in 'Political Debate & Discussion' started by Salty, Dec 10, 2007.

  1. Salty

    Salty 20,000 Posts Club
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  2. Pastor Larry

    Pastor Larry <b>Moderator</b>

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    All employers are required to withhold federal taxes. Churches are no different.
     
  3. LeBuick

    LeBuick New Member

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    I didn't know this. No taxes are with held from my support check but I do file and pay at the end of the year..
     
  4. Salty

    Salty 20,000 Posts Club
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    If you are a pastor, it is beacuse the govt considers you an independent contractor. That also means you pay the full social security and medicad.
    (in an employer-employee relationship, the employer pays 1/2 of FICA and Medicade)

    Salty
     
  5. PK

    PK New Member

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    It all depends on if you think that God's house should be run like a buisness or not? Is Jesus the Lord of the New Testament Church or is president of the 501c3?
     
  6. Pastor Larry

    Pastor Larry <b>Moderator</b>

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    Pastors are not generally considered independent contractors by the IRS, though it can be complicated. The legal definition of an employee includes the pastor.

    If your church considers you an independent contractor and does not withhold taxes, they could be liable not only for taxes not withheld, but also for penalties.

    http://www.irs.gov/businesses/small/article/0,,id=99921,00.html
    http://www.elca.org/treasurer/congregations/relationship.html
    http://www.allbusiness.com/personal-finance/individual-taxes-tax-deductions/698801-1.html
     
  7. Pastor Larry

    Pastor Larry <b>Moderator</b>

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    Actually, it depends on whether or not you think Romans 13 is the command of God or an option that we can reject at our own discretion. Withholding taxes for clergy in no way compromises the lordship of Christ over the church. It rather demonstrates it, since our Lord commanded us to obey the government. If we refuse to withhold taxes appropriately, we have rejected the Lordship of Christ.
     
  8. PK

    PK New Member

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    I do not disagree with your statement in part. We (citizens) should pay taxes but not the church. I know, "Render unto Ceaser what is Ceaser's and to God what is God's", but when confronted with this question himself, Jesus did not tell Judas to pay out of the money bag but to go and get it out of the fishes mouth.
     
  9. tinytim

    tinytim <img src =/tim2.jpg>

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    Witholding taxes through the year would help the pastor when it came time to file... He may even get a return...

    I trust H&R Block to do ours... I would go crazy if I didn't!!!
     
  10. Pastor Larry

    Pastor Larry <b>Moderator</b>

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    The church is not paying taxes. The church is withholding taxes from the individual, and mailing them in on his behalf. It is how the government runs until tax time.

    Even with withholding, I still have to pay quarterly taxes in addition to what I have already paid through withholding.
     
  11. LeBuick

    LeBuick New Member

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    I think I will inquire about this because I have to save every year just to make the Apr 15th deadline. I've even had to file extentions because having to pay Fed, SS, Medicaid/care etc... It's tough...

    Does H&R charge much for this advise?
     
  12. Salty

    Salty 20,000 Posts Club
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  13. Pastor Larry

    Pastor Larry <b>Moderator</b>

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    Not only that, but if your church doesn't withhold, and you dont' pay estimated tax, or if your church doesn't withhold enough and you don't make it up through estimated tax payments each quarter you will be charged interest and penalties.
     
  14. tinytim

    tinytim <img src =/tim2.jpg>

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    Honestly, I can't quote you a price... they take it out of my refund.
    I was taking my business to an accountant that only charged $35 to work up my taxes... but I couldn't get the instant refund... plus we moved half a state away!! lol
    I have been blessed enough to not have to pay... because of the Earned income credit has always been enough to offset the taxes I owe...

    But I am dreading the yr all my kids turn 18...
    Not only will I have to pay taxes but college tuition as well!!!

    Even so, come Lord Jesus come... QUICKLY!!!!
     
  15. annsni

    annsni Administrator
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    LOL - We're at this point in life Tim and it's NOT fun.

    Our church does the withholding and now as DH being a full time pastor with 4 kids, we get it all back at the end of the year. LOL! It's a nice bonus to help pay off the home equity line of credit. :)
     
  16. tinytim

    tinytim <img src =/tim2.jpg>

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    Some churches give the Pastor a Social Security Offset... a little extra that is designated to help pay his taxes...
    I am not sure how it works, or if it is taxable... I think it is.. .but I remember one church gave the pastor I think it was $2500 to offset his taxes...
     
  17. rbell

    rbell Active Member

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    That is taxable $$.
     
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