Authority: IC 6-8.1-3-3
Affected: IC 6-3-4
Sec. 99.
Withholding Instructions for Church and Clergy. Ministers are not subject to the withholding tax but may allow their tax to be withheld on a voluntary basis. Those ministers whose Indiana adjusted gross income tax liability is $100.00 in excess of any taxes withheld must file a Declaration of Estimated Tax on Form IT-40ES by April 15.
Every withholding agent who employs any persons in the performance of personal service is subject to the same rules and regulations contained in the Internal Revenue Code. Even though a minister may or may not choose to have the tax withheld on his own salary, others employed by the church in the performance of a personal service must pay withholding tax and the church would act as the withholding agent.
Liability of Withholding Agent:
45 IAC 3.1-1-99