Assocaition Definition and Housing Allowances

I am on the board of a non-profit religious school, which is established as an association of churches.


The association nominates members to the board, but does not control the assets of the school. All school employees are treated as self-employed for social security and school does not withhold social security.

The association meets the definition for the social security questions. Does this determination need to be reaffirmed?

Second question: We have two teachers who happen to be ordained pastors in their own denominations. However, their teaching duties and job descriptions does not require them to be ordained for their work as teachers at the school.

Are the eligible for housing allowances if the board were to vote to approve this? They do not perform "traditional" ministerial duties, but do teach their subjects from a biblical world view. Their ordination seems to be pro forma and therefore probably not sufficient for them to be considered ministers. There ordination was not a requisite for their employment. For example, their duties are not unique and are identical to the other non-ordained teachers on staff. Can you clarify?

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Jul 09, 2014
Association Definition and Housing Allowances
by: Lewis in NC

Churches must pay social security taxes on its non-clergy employees. So you should probably reaffirm your position with the Social Security Administration. And, no the teachers in the school would not qualify for a housing allowance (IRC 107)as they are not performing their regular duties as clergy--such as the sacraments.

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