Document the Employee is Legally Allowed to Work This involves verifying both their identity and that they are legal for employment in the United States. Once they have presented you with the necessary documentation to verify this, you can fill out their I-9 form. You needn’t submit this to anyone. However, it is crucial to have this document on file for the authorities, should they ever request to examine it. Have the Employee Fill Out Tax Forms The W4 form the IRS will let you know how much to withhold from each of the employee’s paychecks for federal tax purposes. In addition, most states have state income taxes, which will require their own form or forms. The only item you should need to fill out on these forms is your FEIN. The Department of Labor requires that you have on file for all employees: personal information, compensation, payroll deductions, records of hours worked, records of compensation, W4 and I9 forms. Source: Clergy Financial Resources
Clergy Financial Resources is a national accounting and finance organization serving churches and clergy since 1980. They have an unparalleled tax expertise on the complex issues associated with clergy tax law, clergy taxes, clergy compensation and church payroll. Clergy Financial Resources is a valuable resource for clergy, churches and denominations
< BackClergy 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.
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