Source: https://www.churchlawandtax.com/library/legal-issues-for-pastors/chapter-1-definitions-and-status/status-employee-or-self-employed/social-security/
Timestamp: 2019-03-20 09:38:09
Document Index: 451210483

Matched Legal Cases: ['§ 1', 'art 1', 'art 2', 'art 3', 'art 4', 'art 5']

Volume 1 . Chapter 1 . § 1-03.1
Key point 1-03.1. 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 their 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), half the tax is paid by the employee and the other half is paid by the employer. Under the Self-Employment Contributions act (SECA) the total tax is paid by the self-employed person. Which tax applies to ministers ...
Skip to: Chapter 1: Definitions and StatusChapter 2: The Pastor-Church RelationshipChapter 3: Authority, Rights and PrivilegesChapter 4: Liabilities, Limitations and RestrictionsChapter 5: DefinitionsChapter 6: Organization and AdministrationChapter 7: Church PropertyChapter 8Chapter 8, Part 1: Selection of EmployeesChapter 8, Part 2: Compensation and BenefitsChapter 8, Part 3: Employment DiscriminationChapter 8, Part 4: TerminationChapter 8, Part 5: Miscellaneous IssuesChapter 9: Government Regulation of ChurchesChapter 10: Church Legal LiabilityChapter 11: A Summary of Constitutional HistoryChapter 12: Landmark Supreme Court Decisions Interpreting the First Amendment Religion ClausesChapter 13: The Present Meaning of the First Amendment Religion ClausesChapter 14: Significant First Amendment IssuesTable 1-3: Are Ministers Employees or Self-Employed for Federal Income Tax Reporting Purposes—A Summary of all Relevant Cases and Rulings in PCL Chapter 1Income TaxRetirement PlansLegal LiabilityMiscellaneous Federal and State StatutesTable 1-4: Employee or Self-Employed: Selected Differences