If you report 100% of the pastoral donations as housing allowance, how would you fill out a w-3 form if the minister is the only employee with no other wages?
Comments for How to report Housing Allowance (only) on a W-3
Thank you for the above information. Does this mean that our organization is not required to submit the top, red, copy of our minister's W-2 to the IRS?
Housing Allowance on W3 by: Bill OConnell
I am going to answer the question about the pastor's compensation, since a pastors donations has nothing to do with a W3.
If a pastor's comp is entirely housing allowance the church has no reporting obligation to the Federal government. It's reporting obligation is to the pastor only. It must provide him with a letter telling him how much was paid as HA. he then uses that as the basis to prepare the SE tax on his form 1040.