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W-2 Vs 1099

Discussion in '2000-02 Archive' started by ChuckS, Jan 20, 2002.

  1. bb_baptist

    bb_baptist New Member

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    <BLOCKQUOTE>quote:</font><HR>Originally posted by TomVols:
    How is it better for the church? Does it lower the audit profile?<HR></BLOCKQUOTE>

    1.) Less work for the trasurer (withholding, 941 filing, W-2 calculations, etc.)
    2.) Less problems with the IRS. Although, a withholding problem does not mean an audit.
    3.) More money for the pastor. (Interest on not withheld amount for 3 months at a time) [​IMG]
     
  2. Pastor Larry

    Pastor Larry <b>Moderator</b>
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    <BLOCKQUOTE>quote:</font><HR>Originally posted by TomVols:
    Pastor Larry,
    Since you are self-employed for S.S., would you not be exempt from FICA and instead have to pay SECA? FICA is the S.S. an employee must pay. SECA is what a self-employed person (like pastors) must pay.
    <HR></BLOCKQUOTE>

    You are right on that regard. My mistake in the letters there. What I was referring to was the social security tax that I have to pay all 15.whatever percent of :(
     
  3. TomVols

    TomVols New Member

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    Pioneer,
    Ministers may choose to voluntarily participate in withholding or make estimated tax payments on a quarterly basis. I'm sure you're aware of that. Good post, good overview of ministerial tax issues.
     
  4. TomVols

    TomVols New Member

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    <BLOCKQUOTE>quote:</font><HR>Originally posted by Pastor Larry:


    You are right on that regard. My mistake in the letters there. What I was referring to was the social security tax that I have to pay all 15.whatever percent of :(
    <HR></BLOCKQUOTE>

    No problem. I'm like the webmaster though. I hope you haven't paid too much taxes.
     
  5. TomVols

    TomVols New Member

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    <BLOCKQUOTE>quote:</font><HR>Originally posted by webmaster:


    1.) Less work for the trasurer (withholding, 941 filing, W-2 calculations, etc.)
    2.) Less problems with the IRS. Although, a withholding problem does not mean an audit.
    3.) More money for the pastor. (Interest on not withheld amount for 3 months at a time) [​IMG]
    <HR></BLOCKQUOTE>

    1. My treasurer doesn't seem to mind. Not that much more work and we have other employees anyway.
    2. Haven't had a problem yet.
    3. Yeah, but I'd fritter away that extra $4.87 :eek:
     
  6. Pastor Larry

    Pastor Larry <b>Moderator</b>
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    <BLOCKQUOTE>quote:</font><HR>Originally posted by TomVols:
    No problem. I'm like the webmaster though. I hope you haven't paid too much taxes.<HR></BLOCKQUOTE>

    I kind of feel if I have paid any it has been too much. [​IMG] Of course, I understand that we must pay for the necessary services like police, fire, military, and stuff ... but is congress really necessary????? And the pork really gets to me.

    I kind of think that if the government stopped all withholding and forced every taxpayer to write a check every quarter to the government out of their own pocket that we would see a revolt to beat the band. I think withholding has made it possible for taxes to be raised without people ever really realizing what it is actually costing. If they got it in their own pocket and then had to write that check and sign it, they would realize how much it is.

    Of course, I guess this off the topic here so I will get off my stump.
     
  7. bb_baptist

    bb_baptist New Member

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    <BLOCKQUOTE>quote:</font><HR>Originally posted by Pastor Larry:

    I kind of think that if the government stopped all withholding and forced every taxpayer to write a check every quarter to the government out of their own pocket that we would see a revolt to beat the band. I think withholding has made it possible for taxes to be raised without people ever really realizing what it is actually costing. If they got it in their own pocket and then had to write that check and sign it, they would realize how much it is.
    <HR></BLOCKQUOTE>

    How true . . .
     
  8. bb_baptist

    bb_baptist New Member

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    How much longer before churches start withholding the tithe? [​IMG]
     
  9. TomVols

    TomVols New Member

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    You can sign up for Electronic Fund Transfers at some churches. This is where a set amount is automatically transfered from your account to the church's account. And from what I understand from my wife, a former Jew, this practice of withholding tithes is already commonplace among Jews.
     
  10. TomVols

    TomVols New Member

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    Pastor Larry is right.

    I'd much rather pay a national sales tax or else a flat tax.
     
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