When completing a W-2 for an ordained pastor who receives a salary and an additional allowance for Social Security and Medicare taxes (often referred to as a SECA allowance), the salary and the SECA allowance should be included in Box 1.

Here are the steps to do so:

  1. Box 1 – Wages, Tips, and Other Compensation: Include the total amount of the pastor’s salary plus any SECA allowance provided by the church.

  2. Box 14 – Other: It may be helpful to itemize the SECA allowance here for the pastor’s reference, even though it’s already included in Box 1.

This ensures the reported amount reflects the pastor’s total taxable income. Always double-check with current IRS guidelines to ensure compliance.

Still, have questions?
Contact Pro Advisor Support to answer your questions.

Clergy Financial Resources
Tax I Payroll I Bookkeeping I HR | Consulting
11214 86th Avenue N.
Maple Grove, MN 55369

Tel: (888) 421.0101
Fax: (888) 876.5101

<  Back

Clergy Financial Resources serves as a resource for clients to help analyze the complexity of clergy tax law, church payroll & HR issues. Our professionals are committed to helping clients stay informed about tax news, developments and trends in various specialty areas.

This article is intended to provide readers with guidance in tax matters. The article does not constitute, and should not be treated as professional advice regarding the use of any particular tax technique. Every effort has been made to assure the accuracy of the information. Clergy Financial Resources and the author do not assume responsibility for any individual’s reliance upon the information provided in the article. Readers should independently verify all information before applying it to a particular fact situation, and should independently determine the impact of any particular tax planning technique. If you are seeking legal advice, you are encouraged to consult an attorney.

For more information or if you need additional assistance, please use the contact information below.

Clergy Financial Resources
11214 86th Avenue N.
Maple Grove, MN 55369

Tel: (888) 421-0101 
Fax: (888) 876-5101
Email: clientservices@clergyfinancial.com

REQUEST INFORMATION

If you would like to learn more about our tax services designed for clergy or payroll, bookkeeping or HR designed for churches, please complete the request form to have an advisor contact you.

Click Here
Sign Me Up

Sign up here to be notified of new services, products or promotions from Clergy Financial Resources.