Tax Information and W-2 Guidance, 2019 Reminders, Returning in February
Compensation and Staffing News
Special Year-End Issue
Guidance for W-2 Forms
Our 2018
W-2 Form instructions offer box-by-box assistance for completing W-2 forms, both for ministers (relative to their special tax provisions) and for other staff. Forms must be given to employees and sent to the Social Security Administration by January 31. Please note these changes and reminders:
Moving Expenses Paid for New Employees
If an employee moved in 2017, valid expenses paid or reimbursed by the employer in 2018 are tax-free, as in prior years.
If the employee moved in 2018, the Tax Cuts and Jobs Act dictates that employer payment and/or reimbursement of expenses is taxable income. The amount should be included in Box 1.
Social Security and Medicare
The earnings cap for Social Security increased to $128,400 in 2018. See boxes 3 and 4 for non-ministerial employees.
Boxes 3 through 7 are always left blank for ministers as the IRS prohibits congregations from filing Social Security/Medicare taxes on behalf of ministers. (Ministers file SECA quarterly.)
Reminders for 2019 (from December issue)
As we welcome the new calendar year, please remember the following:
The Housing Allowance for ministersmust be designated by the congregation before any expenses can be applied to it. Be sure to formally designate a 2019 Housing Allowance for your minister(s) by the end of 2018 so that they can take full advantage of it beginning January 1. (Here's more about the Housing Allowance.)
New minimum wage lawsare going into effect on January 1 in over 20 states and in a number of municipalities.
Compensation and Staffing News Returns in February
