Jump directly to the content
Federal
State:

• Many churches that filed a timely Form 8274 (waiving a church's obligation to pay the employer's share of FICA taxes on the wages of nonminister employees) are not advising employees of their obligation to report and pay social security taxes as self-employed persons. In many cases, the church employees are simply not paying any social security taxes. The nonminister employees of any church that filed a timely Form 8274 are treated as self-employed for social security purposes, meaning that they must estimate and prepay (in quarterly installments) their self-employment tax obligation (currently 12.3% of self-employment earnings). Employees should obtain Form 1040-ES, and use the worksheet included with the form to estimate their self-employment tax liability. One-fourth of the total liability is then paid to the IRS with a payment voucher (included with the form) by April 15, June ...

Log In For Full Access

Interested in becoming a member? Learn more.

Richard R. Hammar is an attorney, CPA and author specializing in legal and tax issues for churches and clergy.

Related Topics:
Posted:
  • July 1, 1987

Related ResourcesVisit Store

Planning the Pastor’s Retirement Package
Planning the Pastor’s Retirement Package
Use this guide to develop your pastor's retirement plan for all stages of life.
12 Law & Tax Guidelines for New Ministers
12 Law & Tax Guidelines for New Ministers
Essential knowledge to ensure legal and financial clarity and integrity in ministry.
20 Finance Questions Churches Ask
20 Finance Questions Churches Ask
Richard Hammar answers relevant tax and finance questions for church leaders.