A Pastor who is collecting Social Security retirement benefit, but still works for the church...

by Dusty
(Fort Myers, FL, United States)

If a Pastor is retired from secular work and is collecting Social Security, is he still limited to what the church can pay him without interfering with his social security benefits?

I know the limit in 2020 is $18,240, but does that include housing allowance, medical or life insurance as well?

Thank you for your help,
Dusty

Comments for A Pastor who is collecting Social Security retirement benefit, but still works for the church...

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Oct 15, 2020

Housing Allowance Counts
by: Vickey

I am assuming he is under full retirement age from your question. If so, the housing allowance will count as income when figuring how much he can make before his social security benefit is reduced.

I don't think the medical/life insurance would count as long as you are not paying him directly such as a medical sharing plan, BUT I am not an expert, so please advice him to call his local social security office and verify what exactly will count toward his earning ceiling.

I found an article that was written years ago, so the amounts are not current for today, but it is a good article and may help with. your question:

https://www.clergysupport.com/avoiding-the-social-security-earnings-ceiling/

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Join in and write your own page! It's easy to do. How? Simply click here to return to Fringe Benefits.

If you want to DIY your payroll, I highly recommend you look at using Gusto! It is very user friendly and their support is awesome! Plus they know how to set up and maintain payrolls for churches and nonprofit organizations.

Note: I am a "partner" of Gusto, but as I have told you before ... I never recommend anything that we or our clients have not tried and love =)

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