Key point 1-03.01. While most ministers are employees for federal income tax reporting purposes, they all are self employed for Social Security purposes with respect to services they perform in the exercise of ministry. This means that ministers are not subject to "FICA" taxes, even though they report their income taxes as employees and receive a W 2 from their church. Rather, they pay the "self employment tax."
Social Security taxes are collected under two separate tax systems. Under the Federal Insurance Contributions Act (FICA)[24] I.R.C. §§ 3101 et seq. , half the tax is paid by the employee and the other half is paid by the employer. Under the Self Employment Contributions Act (SECA)[25] Id. at §§ ...
Interested in becoming a member? Learn more.
This content is designed to provide accurate and authoritative information in regard to the subject matter covered. It is sold with the understanding that the publisher is not engaged in rendering legal, accounting, or other professional service. If legal advice or other expert assistance is required, the services of a competent professional person should be sought. "From a Declaration of Principles jointly adopted by a Committee of the American Bar Association and a Committee of Publishers and Associations."
Due to the nature of the U.S. legal system, laws and regulations constantly change. The editors encourage readers to carefully search the site for all content related to the topic of interest and consult qualified local counsel to verify the status of specific statutes, laws, regulations, and precedential court holdings.
