W-2, Wage and Tax Statement
Clergy receive a W-2 at the end of the year, like all other employees. Because of their unique status, the form needs to be filled out differently.
Box 1, Wages, tips, other compensation: The clergy’s taxable wages would be reported in this box.
Box 2, Federal income tax withheld: Any federal taxes that were withheld from the clergy’s paychecks should be reported here.
Boxes 3-6: These boxes relate to Social security and Medicare taxes. Since clergy are exempt from this, these boxes should be blank.
Box 14, Other: If the clergy is getting a housing allowance, this should be reported here.