941 and w-2 dont match

All Quarterly 941 Forms Must Match W-2

Question regarding matching 941s and W-2s:

In 2007 the treasurer filed 941s and gave w-2s for the minister and his wife. The minister chose to not have any taxes withheld; however, there were soc.sec/medicare taxes for the wife who was employed as the church secretary.

Now, as the new finance person I am trying to get this figured out.

The IRS says the 941s and W-2s don’t balance.

Do you have examples of HOW the 941 and w-2's should have been written out?

The IRS did a correction of several K and calculated taxes. I think it is an error in reporting because the only "taxes" would have been for the church secretary.

I am looking to learn which forms I need and how to indicate that it is only the one of them that had taxes.

Maybe a list of the forms that should have been sent in first with how they would have looked. and, now which forms for a corrections. thanks.....joy

vickey's reply

Oh boy, what a mess for you to try to straighten out. First of all, you NEVER want the IRS to figure out anything out for you.

With the IRS already involved it would probably be wise to consult a CPA. They know which forms you need to file and how to talk to the IRS and get things straighten out.

For future reference, make sure the pastor's wife's W-2 includes her total wages in box 1, 3 5, and 16 (if you have state income taxes). Make sure in box 4 and 6 you include SS and Medicare taxes withheld and matched.

On your minister's W-2, you will just fill out box 1 and 16 (total wages) and 2 and 17 (income tax withheld) and then either leave 3 - 6 blank. Do not insert 0s. See this page for an example of a Pastor's W-2.

You will also want to make sure your total wages in box 1 equal the total of all amounts on line 1 in the four 941s you sent in quarterly. Then you will check the withholding (income and FICA) to make sure they match. Make sure if you withhold state income taxes that those match your state quarterly returns.

See this post for tips on preparing an IRS 941 Form for both ministers and nonministers: Inclusion of pastor on 941 with other employees

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