Pastor

Continuing education for ministry leaders
Pastor
Weekly Lessons, created and written by Richard R. Hammar, J.D., LL.M., CPA, give you a basic legal overview of essential topics based on staff or volunteer positions within a church.

Previous Lessons

Week of July 29

Jury Duty

This Week's LessonWeek of December 22

Estimated Taxes

Introduction

Pastor G is serving in his first pastoral position. He soon realizes that the church treasurer is not withholding income taxes from his wages, but he is not sure why. The treasurer informs him that churches are not required to withhold taxes from ministers' wages, and that ministers must use the "estimated tax procedure" to pay their taxes. Pastor G is not familiar with this procedure. This issue is addressed in this week's lesson.

Our lesson this week examines the topic of Estimated Taxes. The Executive Summary provides a concise review of the key points. Before we get started, test your knowledge by completing the following quiz.

Weekly Quiz

Instructions Click on the correct answer for each of the following questions.

Executive Summary

Ministers' compensation is exempt from federal income tax withholding, whether they report their income taxes as employees or as self-employed. Ministers must prepay their income taxes and self-employment taxes using the estimated tax procedure (unless they elect voluntary withholding).

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