I serve as a certified minister at my local church. My church has been taking our Social Security and Medicare taxes out of my paycheck.
My entire salary of $14,400 has been designated as housing allowance. Should the church be deducting SS and Medicare taxes out of my paycheck?
No. They should not be withholding FICA on a minister’s compensation...especially a housing allowance. No taxes are withheld on a HA...not income, Social Security, or Medicare taxes. Direct them to IRS Pub 517 and Topic 417.