The W-4 form consists of five steps. Since not every step applies to all employees, some sections may justifiably be left blank.

Step 1

Clergy and non-clergy individuals must provide personal information, ensuring that the name, address, and Social Security number entered match the records on file with Payroll.

This section also requires you to indicate your filing status: single or married filing separately, married filing jointly, or qualifying widow(er) or head of household. Be sure to check only one box. 

Step 2 (non-clergy only)

This section should be completed by individuals holding more than one job or by spouses who are both employed and filing jointly. 

Step 3 (non-clergy only)

Individuals claiming dependents must complete this section. It provides instructions for determining the amount for the Child Tax Credit and the Credit for Other Dependents, which the employee may claim when filing their federal tax return. 

Step 4

This section is optional for non-clergy but required for clergy.

Employees who wish to have additional taxes withheld from other income, which is not subject to automatic withholding, should enter the amount of other income on Line A of this section. This may include interest, dividends, and retirement income.

In Step 4, Line C, both non-clergy and clergy can request extra withholding from their paycheck.

Clergy – The formula to calculate this is:

(Total taxable income, including housing, from Boxes 1 and 14) * 15.3% / number of pay periods

Clergy often complete this line as an alternative to making estimated tax payments independently. They find it more convenient to have the amount deducted directly from their paycheck, rather than completing 1040-ES paperwork and making quarterly payments themselves. This step also helps increase withholding to cover self-employment tax.

Step 5

Ensure the employee signs and dates this section accurately.

You are responsible for completing the remaining fields: the employer’s name and address, the first date of employment, and the Employer Identification Number (EIN).

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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

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