So according to the W-2 the Church Withheld SS and Medicare from the Employee.

So following the W-2 he would no longer have to pay any Self Employment Tax.

It is possible that they grossed up the Wages for 1/2 of the total SS and Medicare, and actually did withhold the second 1/2 from his wages, and reported on forms 941, just like any other employer and employee.

I would be interested to see how the Church actually reported it on their 941 forms (if they did it at all).

I could make an argument in my mind to treat it like a regular W-2 and do nothing with the self employment tax, but probably some more questions for the Pastor, to get answers from the church on what they actually did as far as 941 treatment would be in order.

I have seen a lot of different things on pastor W-2 forms, but never this one.