Enter Tax Information

Enter your employees' tax elections, allowances, and withholding amounts.

You must have accounting administrator permissions to perform this task. If you need more information on ministerial taxes, read Publication 517. Employees fill out their federal and state tax information on their W-4s. Make sure these fields match your employee's W-4 as you enter their information. If you clicked Next from the previous section and have not exited, disregard the first two steps.
Only state and local tax information that applies to an employee's address will display. Wages for ministers are FICA exempt and will print as taxable income on Form W-2. Only the voluntary withholding amount you enter will be deducted for income taxes.
  1. In the top-left corner, click your ministry hub then Accounting. Then click Payroll > Employees.
  2. Either click the employee's name, or click the ellipsis icon beside an employee and select Edit.
  3. On the Tax Information tab, only turn on the 2020 W-4 if this employee is new or has requested federal withholding changes.
  4. Select if you want to defer an employee's Social Security tax. This is optional to you as the employer, even if an employee requests deferral.
    CAUTION: You must confirm that you understand the following requirements and expectations set by the IRS:
    • Employers are not required to permit a deferral, even upon an employee's request, without reason.
    • Only wages of less than $4,000 per biweekly pay period qualify for deferral.
    • The deferral period is September 1 - December 31, 2020.
    • Employers must set up a plan for employees to repay the deferred amount ratably between January 1 and April 30, 2021.
    • Employers are responsible for collecting this repayment.
    • Employers must pay interest and penalties on amounts not collected by May 1, 2021.

    This is for informational purposes only and should not be relied on as tax, legal, or accounting advice. Please consult with legal and tax professionals before opting to defer taxes, and reference the official IRS website for more information.

  5. Select any necessary elections, and enter withholding.
  6. If this employee lives out of state, select whether to file taxes from the state in which they live or the state in which they work.
  7. For ministers, if necessary, calculate the voluntary withholding amounts per paycheck, and enter the numbers.
  8. If you want to continue with this employee, click Next: ACA. If you want to return to this later, click Save & Close.
    Note: Ministers typically file Form 4361 to exempt themselves from self-employment tax. If your ministers haven't done this, increase the voluntary amount withheld to offset the cost of self-employment tax they would otherwise have to pay.

Edit Employee Taxes

Edit an employee's tax information.

If you need more information on ministerial taxes, read Publication 517. Employees fill out their federal and state tax information on their W-4s. Make sure these fields match your employee's W-4 as you enter their information.
  1. In the top-left corner, click your ministry hub then Accounting. Then click Payroll > Employees.
  2. Click the ellipsis icon beside the employee you want to edit.
  3. On the Taxes tab, click Edit Tax Information.
  4. Select if you want to defer an employee's Social Security tax. This is optional to you as the employer, even if an employee requests deferral.
    CAUTION: You must confirm that you understand the following requirements and expectations set by the IRS:
    • Employers are not required to permit a deferral, even upon an employee's request, without reason.
    • Only wages of less than $4,000 per biweekly pay period qualify for deferral.
    • The deferral period is September 1 - December 31, 2020.
    • Employers must set up a plan for employees to repay the deferred amount ratably between January 1 and April 30, 2021.
    • Employers are responsible for collecting this repayment.
    • Employers must pay interest and penalties on amounts not collected by May 1, 2021.

    This is for informational purposes only and should not be relied on as tax, legal, or accounting advice. Please consult with legal and tax professionals before opting to defer taxes, and reference the official IRS website for more information.

  5. Select any necessary elections, and enter withholding.
  6. For ministers, if necessary, calculate the voluntary withholding amounts per paycheck, and enter the numbers.
  7. Once you're satisfied with your edits, click Save.