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Pastor - Elective Deferral

Posted: Wed Feb 16, 2022 7:46 pm
by christybeth
We have a pastor that wants elective deferral for the 403b plan and this is a first for me. We have other lay employees doing this but I want to make sure the Pastor is properly set him up in payroll since they can be treated differently in regards to taxes, etc.

Can I use the same item number for him as a pastor or do I need to use a different item number with other selections? The current 403B Deduction has item type as "Other Deduction", reported on W2 with box 12 code E and only Federal Withholding is checked (we do not have state tax). This pastor does not have Federal Withholding but we do have another pastor that does. Thanks in advance!!

Re: Pastor - Elective Deferral

Posted: Thu Feb 17, 2022 3:28 pm
by NeilZ
christybeth wrote:
Wed Feb 16, 2022 7:46 pm
We have a pastor that wants elective deferral for the 403b plan and this is a first for me. We have other lay employees doing this but I want to make sure the Pastor is properly set him up in payroll since they can be treated differently in regards to taxes, etc.

Can I use the same item number for him as a pastor or do I need to use a different item number with other selections? The current 403B Deduction has item type as "Other Deduction", reported on W2 with box 12 code E and only Federal Withholding is checked (we do not have state tax). This pastor does not have Federal Withholding but we do have another pastor that does. Thanks in advance!!
You would need to create a new Item Description (and number) for the pastor, unless he decides to have taxes withheld. If not, create an item with the same parameters as the first, but without any of the tax selections checked.