Clergy

The Self-Employment Taxes that most members of the Clergy must pay quarterly are actually made up of two different taxes: Old-age, survivors and disability insurance (also known as “OASDI” or the more commonly used term “Social Security”) Medicare taxes   OASDI taxes are calculated as 12.4% of...

12 December, 2019

If you are new to Ministry, it’s possible that you’ve never heard of self-employment taxes before, much less paid them. One common mistake for new Ministers is filing the 1040 without taking self-employment taxes into account, which can result in a big bill later when...

05 December, 2019

The minister’s housing allowance is a very important tax benefit available to ministers. Section 107 of the Internal Revenue Code allows Ministers for Tax Purposes to exclude some or all of their ministerial income designated by their church or church-related employer as a housing allowance...

28 November, 2019

A new Call can be exciting, but the logistics of moving and setting up in a new location can stressful, even before thinking about your taxes. Here are a few things to consider when moving to a new location. Moving Expenses are Not Deductible   Regardless of whether...

14 November, 2019

From a personal income perspective, the first thing to understand is that the income tax code takes the position that any money paid to or for an employee is income unless specifically excluded by the tax code. In addition to a pastor’s base salary, there are...

07 November, 2019

A recent case in the for-profit world underscores the potential threat.   The News   “A company’s CFO is liable for its past-due employment taxes, a court says. He had control over the company’s bank account and oversaw all aspects of the firm’s operations and finances, including payroll, tax...

31 October, 2019

For employers, the Internal Revenue Code defines payroll tax obligations in two primary areas: (1) federal income tax withholding and (2) Social Security/Medicare tax withholding. The Code determines what income is subject to taxes and the related withholding of the taxes. Federal Income Tax Withholding   Ministers are...

24 October, 2019

Do you get paid an allowance for housing? Are you sure that it’s set up correctly? Double checking your housing allowance is an easy way to avoid annoying tax headaches later. In order to take a housing allowance, there needs to be proper documentation: A specific...

17 October, 2019

What benefits does your church offer its employees?   This question tends to pop up a lot in job interviews—often right after the interviewer asks “Do you have any questions for me?”. And employee benefits are a fair thing to inquire about; most of us would like...

10 October, 2019

Ready-to-use resolution language for church board to set a clergy housing allowance in 2019 by Richard R. Hammar.   Editor’s Note: A resolution can only be applied prospectively, never retroactively. For a church to have a resolution in place for a specific calendar year, it needs to...

03 October, 2019