Final answer:
A church is not required to withhold FIT from a minister's salary due to the protection of the Establishment Clause and the Free Exercise Clause. A minister must complete Form W-4 to allow the church to withhold FIT.
Step-by-step explanation:
According to the Supreme Court case Hosanna-Tabor Evangelical Lutheran Church and School v. Equal Employment Opportunity Commission, a church is not required to withhold Federal Income Tax (FIT) from a minister's salary. This is because the appointment of ministers is protected by the Establishment Clause and the Free Exercise Clause of the First Amendment, which give religious organizations the freedom to select their own ministers without government interference. Ministers are considered employees of the church and are typically treated as self-employed for tax purposes.
In order for a church to withhold FIT from a minister's salary, the minister must provide the church with a completed Form W-4, Employee's Withholding Allowance Certificate. This form allows the minister to indicate the amount of FIT they want the church to withhold from their salary. By completing this form, the minister gives consent for the church to withhold FIT.
It is important to note that tax laws can be complex and may vary depending on the specific circumstances. Ministers should consult with a tax professional or the Internal Revenue Service (IRS) for guidance on their individual tax situation.