Most reimbursements of a spouse s travel expenses. Determine the amount of income tax to withhold. One way is called the wage bracket method in which you use the withholding tables in the Publication 15. The other way is the percentage method in which the number of allowances claimed by the employee are multiplied by an appropriate value given in Publication 15. Normally federal income taxes are withheld only on the wages of the non-clergy.
Clergy are exempt from withholding.
To do this a clergy needs to fill out the W-4 giving you a certain dollar amount that he would like to have withheld. Withhold FICA taxes from non-minister employees wages. The Congregation must deposit the taxes it withholds. These dollars must be deposited according to the deposit status that the IRS determines for each congregation. In November of each year the IRS notifies every employer of their deposit status for the next year.