Many ministers, especially those just starting out, neglect to “render unto Caesar” and fail to file income tax returns.
There is often confusion surrounding when churches must withhold income or Social Security taxes for their ministers and when it is up to the minister themselves. Ministers are required to pay in for their income taxes and self-employment taxes each year, and like all self-employed workers, ministers are required to deposit quarterly tax estimates of their self-employment taxes or elect voluntary tax withholding through payroll.
Over time, the failure by ministers to file their tax returns can create a big mess of failure-to-file penalties, failure-to-pay penalties, the taxes themselves, and interest on all the taxes and penalties.
If you find yourself with years of unfiled tax returns, overwhelmed with the intricacies of how ministers’ taxes are filed differently, or simply wanting someone with experience to handle your payroll and taxes, Wisdom Over Wealth can help!
Wisdom is the expert in church tax and accounting, and we would love to partner with you! Send us an email or give us a call. We would love to help!
