W-4 Annual Requirement

Question: I am a bi-vocational pastor. My secular employer is a national company and does not require me to complete a new W-4 every year. Why does the church have to have a new W-4 for each employee annually?

Answer: IRS documentation is a bit confusing on this subject. The form W-4 instructions actually state that the purpose of the W-4 is to allow your employer to withhold the correct amount of federal income tax. They then state that you should consider filing a new form each year and when your personal or financial situation changes. This would seem to indicate that it is not required but optional.

I would agree with that notion except that the form actually changes slightly each year and it indicates on the form that the employer may have to file the form with the IRS. This seems to have the intent that it should be up-to-date at all times.

In my discussions with tax professionals, they all seem to agree that the form should be completed each year.