Church year-end payroll and tax reporting checklist
January is busy for church offices. This checklist covers the main tasks. Confirm every deadline and dollar threshold at IRS.gov, since they change.
Before year end
- Collect Forms W-9 from every contractor and vendor you expect to pay enough to require a 1099, before the final payment.
- Review worker classification. See employee or contractor for churches.
- Set the pastor's housing allowance for next year, in writing, before the year begins. See Clergy Tax Tools.
- Reconcile payroll records against the general ledger.
January
- Forms W-2 to employees and to the SSA, due January 31 (or the next business day).
- Forms 1099-NEC to contractors and to the IRS, also due January 31. The reporting threshold has been $600 for payments through 2025 and rises to $2,000 for payments made in 2026 and later, but verify the current figure.
- Form 941 for the fourth quarter, generally due January 31. Quarterly filing dates are April 30, July 31, October 31 and January 31.
- Donor statements. A donor needs a written acknowledgment for any single gift of $250 or more. Many churches send annual statements by the end of January.
Clergy and church specifics
- Ministers are generally treated as employees for income tax purposes but self-employed for Social Security, and wages are not subject to income tax withholding unless they request it. Let the pastor know what is and is not withheld.
- IRS Publication 1828, Tax Guide for Churches and Religious Organizations, is the best single reference.
Keep records
Retain payroll records for at least four years, and keep the board informed of filing dates so a missed deadline is never a surprise. A bookkeeper or CPA familiar with churches is worth the cost.
Related guides
Published Oct 3, 2026. General information, not legal, tax or HR advice. Rules vary by state and by church.