Most churches will issue a Form W-2 to a minister for their compensation if the minister is considered an employee of the church. The determination of whether a minister is an employee or an independent contractor is crucial in deciding whether to issue Form W-2 or...
Clergy
Can a church board amend a minister’s housing allowance?
Question: Our minister would like to increase his housing allowance due to higher expenses than expected. Can our board amend it? Answer: Yes, your church can amend the housing allowance, but you must pay attention to the following rules: Proper authorization: The...
Why Are Clergy Subject To Self-Employment Tax
Clergy are subject to self-employment tax because their earnings from ministerial services are considered self-employment income under the Self-Employment Contributions Act (SECA). This classification is based on several key provisions and interpretations of the...