A NOTE TO CHURCHES THAT HAVE DISAFFILIATED:

The information on this website is applicable to churches that are United Methodist as of December 31, 2023.  If your church disaffiliated effective June 30, 2023 or October 31, 2023, this information may be helpful for pay periods up through the disaffiliation date.  Because the West Ohio Conference does not have information about your context post-disaffiliation, we cannot field questions nor offer suggestions on the best way forward for the full 2023 reporting year.  If you have questions, please contact a tax preparer, CPA or, if you are affiliated with a denomination, your denominational leaders.

Information for W-2 Preparation

GCFA provides information regarding clergy wages, benefits, and relevant tax treatment. Review the Tax Packet site for extensive coverage of clergy tax matters (http://www.gcfa.org/services/legal-services/gcfa-tax-packet/).

Example Clergy W-2

Health Savings Accounts (HSA)  contributions are reported in Box 12 Code W. This amount should include employer as well as employee contributions. If you pay health insurance premiums via the West Ohio Conference plan, you likely have employer contributions that need to be included in this amount.  See IRS Publication 969 for more information regarding HSA reporting.

Non-employee Clergy Payments

Local churches are required to issue an IRS Form W-2 for clergy appointed to their church and not a Form 1099-MISC. Only issue a Form 1099-MISC to clergy who receive occasional, intermittent  or one-time payments. See the IRS site to determine the proper treatment.

PDF Directions for W-2 and W-3's according to the IRS
PDF for IRS Publication 15-B
PDF for IRS Publication 517 Social Security and Other Information for Members of the Clergy and Religious Workers
General Council on Finance and Administration (GCFA) Tax Packet