If you’re a new church treasurer, and, after three months, you finally are feeling comfortable cutting paychecks for your pastor and lay employees. Then the IRS comes in demanding information on the Form 941. Does a church really have to fill out this form? That depends.
The short answer is, if you just have a pastor and are not withholding Federal Income Tax, you do not have to do the Form 941. If you do have to file the Form 941, it’s not horrible. I walk you through it. I’m mainly focusing on small and medium-sized churches that don’t have to monthly remit payroll withholdings. For larger churches, chances are you have payroll software that fills this out for you.
Check out the video below:
- Form 941: https://www.irs.gov/pub/irs-pdf/f941.pdf
- IRS Letter to the UMC: https://www.gcfa.org/media/1282/letter_to_gcfa_from_irs_re_form_941_6-1-11.pdf
- UMC Instructions on 941: https://www.gcfa.org/media/1283/form941_filing_requirements.pdf
- Paying Pastor video: https://youtu.be/X-fAu9IbilA
- Paying Laity video: https://youtu.be/pG9tov3xV8E