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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 February 2

Use of a Church-Owned Car

Week of February 9

Retirement Gifts

This Week's LessonWeek of January 26

Self-Employment Tax Paid by the Church

Introduction

This lesson introduces the issue of Self-Employment Tax Paid by the Church. You can review the Executive Summary to obtain the key points or read the Weekly Lesson for a more thorough presentation of this topic. Start by completing the following interactive quiz to test your knowledge.

A church pays Pastor B total compensation of $40,000 for the current year, including a $10,000 housing allowance. The church also agrees to pay all of Pastor B's Social Security taxes for the year, which amount to $5,000. How should the church, and Pastor B, treat the amount paid by the church to cover Pastor B's Social Security taxes? Does this amount represent taxable income? If so, for income taxes or Social Security or both? These are the questions addressed in this lesson.

Weekly Quiz

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

Executive Summary

Ministers are always ...

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