Common use of Payroll Withholding Clause in Contracts

Payroll Withholding. Since deacons are considered self-employed for Social Security purposes, no Social Security or Medicare taxes should be withheld from their checks (additionally, no Social Security or Medicare wages should be included on their W-2s). Deacons are also exempt from normal income tax withholding. However, deacons may enter into a voluntary agreement with their employer to have both federal and state income tax withheld. The basic form used for such an agreement is Internal Revenue form W-4. Deacons who have income taxes withheld from their paychecks should have enough taken out to cover any self- employment taxes that will be due. Deacons that do not have income taxes withheld from their checks should make estimated quarterly payments to both the federal and state revenue agencies.