Minister - Self -employeed but electing Employee treatment

by BC
(KS)

Can a minister elect out of self-employed treatment? I don't mean the election out of social security taxes, I mean actually electing to be treated as an employee for all taxes - Fed, FICA, State?

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Mar 26, 2014
Clergy employee
by: Sandi

looks like there is no choice, pastors are "dual employee" he can elect to have taxes withheld but they will be included as income on w-2 box 1, seems like it would just cause more paperwork for both church and pastor to have them withheld.
hope this helps

IRS pub 517 Income: Any amount a church pays toward your income tax or SE tax, other than withholding the amount from your salary. This amount is also subject to income tax.

IRS http://www.irs.gov/taxtopics/tc417.html
For social security and Medicare tax purposes, regardless of your status under the common law, the services you perform in the exercise of your ministry are considered self-employment earnings and are generally subject to self-employment tax.

IRS pub 17 Social security and Medicare taxes. you must pay self-employment tax on your earnings from services performed in the United States.

prayers

Mar 29, 2014
Sandi is correct
by: Bill OConnell

See Vickey's section on clergy taxes in the left side of her page. It is thorough and correct.

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