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If your church or organization provided compensation to employees, temporary or seasonal workers this income should be reported on a W-2 Wage and Tax Statement. Compensation can include cash as well as taxable fringe benefits.   Some of the more common taxable fringe benefits in the ministry are love gifts, honorariums and stipends.

W-2’s are prepared in multiple parts, each part is referred to as a copy.

Copy A – Social Security Administration Copy
Copies B, C and 2 – Employee Copies
Copy D – Employer Copy

Copies B, C and 2 should be distributed to employees by February 2nd.

Copy A of the W-2 should be submitted to the Social Security Administration along with the W-3 Transmittal form by March 2nd.

Employers who file more than 250 W-2’s are required to file W-2’s electronically by March 31st.

Learn more about church payroll reporting requirements – Check out our free Church Finances 101 course.

Also, every church bookkeeper should have these resources handy:

IRS Circular E – Employer’s Tax Guide (Publication 15)

IRS Employer’s Guide to Fringe Benefits

Belinda Whitfield

Belinda Whitfield is a certified public accountant that specializes in serving churches and non-profit organizations. Through her firm, Whitfield & Associates, she provides tax services, accounting and compliance oversight and strategic planning for churches and non-profits throughout the United States.

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