Social security reimbursment

Our Priest gets a base of $100k. We designate $36k as housing allowance, even though he lives in a church owned parsonage and pays nothing. This brings his W2 box 1 to $64k. What do I calculate the social security reimbursement on? The $100k base? or something else? A few people on the governing board think we should calculate on $100k plus $36k housing.

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Jan 12, 2016
Social Security reimbursement?
by: Lewis in NC

Does your church pay an additional amount to the $100,000 to cover the priest's self-employment taxes for Social Security? He/her base for this tax would be $100,000 in this case($64,000 plus the housing allowance exclusion of $36,000).

If he/she does receive a cash reimbursement for SE Tax then it, too, would have to be added to Box 1, correct?

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