403(b) reporting on W-2

by Carrie
(Hannibal, MO)

The church paid the pastor $20,000 in wages and $10,000 in housing allowance. $1000 was withheld from the pastors wages and put in a 403(b) plan leaving salary of $19,000.
Please advise us on how to complete the pastor's W-2.
Should $19,000 go in box 1 of the W-2?
Will the $1,000 go in box 12 with the code E?
Will the pastor need to pay SECA tax on the $1000 403(b) on his tax return? I can't find this anywhere. Other "employees" with 403(b)contributions are subject to SS/Med tax on their 403(b) contributions.

Thank you for your assistance,
Carrie

Comments for 403(b) reporting on W-2

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W2 is accurate
by: GB

Hi, I'd agree that your w2 construction is correct as you've indicated. $19k gross wages (box 1), $1k housing allowance (box 14), 403(b) designated code E.

I also agree that the savings are FICA & MED taxable.
pension on w-2
by: Sandi

It depends on how the church did the transactions...

go to:
http://www.irs.gov/uac/Publication-15-(Circular-E),-Employer's-Tax-Guide

scroll down to the table and find:
Retirement and pension plans(if you open the pdf instead of the html it is on page 40)

hope this helps
Prayers

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