FAQs - Employer Withholding

Do we need to take out Ohio employer withholding tax on the pastor of our church?

Most members of the clergy are considered self-employed by the IRS and as such in Ohio they would not be subject to income tax withholding. They would, however, be subject to the federal self-employment tax and in Ohio would be required to file estimated payments using the Ohio IT 1040ES using the appropriate social security number.

For further questions on this subject, refer to the IRS Publication 517, Ministerial Services.