Religious organizations have unique tax rules when it comes to reporting ministerial staff salaries and withholding income tax for W2 employees.

According to Publication 1828, Tax Guide for Churches and Other Religious Organizations, salary a church pays ordained clergy is neither subject to mandatory federal income tax withholding nor to the FICA provisions. However, churches are still required to report the minister’s earnings on Form W-2 and the minister may request that the church withhold income tax.