Payroll Withholding, W4 and Priest Withholding Waiver
Parishes need to request W-4 forms from each employee to document their withholding amount for payroll processing. Priests are not required to complete a W-4 if they choose to exercise their right to exemption of federal, state, social security, and Medicare withholdings. However, if a priest wishes to voluntarily have federal and state withholdings taken out from his paycheck, he must complete a W-4. (Priests cannot elect to have the parish withhold social security and Medicare from his paycheck; the parish should never withhold social security or Medicare from a priest’s paycheck.) If a priest later wishes to no longer have withholdings taken out of his paycheck, he should advise the parish in writing that he again elects to exercise his waiver of tax withholdings by filling out the attached form to his parish. This form, like all W-4 forms should be retained in parish employee files.