Accounting, Payroll & Pension Issues/Payroll Taxes

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Expert: - 4/20/2009


Question
Our church has a missionary that is our employee.  He is paid from donations that are designated to him.  He does not have a set salary.  He is paid as he requests distributions.  He has requested that we only withhold FICA and not Federal Income Taxes.  Is that OK??  Also, how would we figure his FICA based on his irregular pay schedule?  Thank you in advance for your help!!!

Answer
If he is not paid a set salary and only by donation. You would figure the fica on the amounts he is paid. The fica tax is 6.2% and he also has to pay medicare tax 1.45% which is a total of 7.65%.

Have him fill out a W-4 for the federal income tax and put exempt on it so that you will be covered by not withholding any federal income taxes.

Shirley

Accounting, Payroll & Pension Issues

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Shirley McAllister, CPP, PHR

Expertise

I can answer payroll questions, payroll tax questions, 401K questions. No stock option questions please and I have some knowledge of other pensions but am most familiar with the 401K pension. I can answer U.S.and Canada payroll questions proficiently and have a good general knowledge of UK and South Africa and some knowledge of Australia and New Zealand Payroll procedures. Please do not ask me homework questions I do not have time to answer them.

Experience

25 years with an international company in the Human Resources, Payroll and Payroll Tax areas.

Organizations
SHRM, APA, I.O.M.A.

Publications
I.O.M.A. and BNA

Education/Credentials
P.H.R., C.P.P., Canadian Payroll Administrator, Successfully passed APA class on UK Payroll Administration. Boise State University Human Resource Certification

Awards and Honors
APA Hotline Citation of Merit for last 8 years.

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