Bivocational Minister's income exceeds Social Security Maximum Amount

by Dean Turvaville
(Clovis,NM)

Is a Minister, whose secular income exceeds the Social Security Maximum amount required to pay Social Security Tax and thus at some point he stops paying the tax during the year, required to pay Self Employment Tax on his housing allowance he receives from the church?

Know the answer? Face the same situation? Please post your answer or comment by using the "comment" link below. Thank you!

Comments for Bivocational Minister's income exceeds Social Security Maximum Amount

Click here to add your own comments

Nov 02, 2010
SE tax
by: Carol

Yes, but I believe if you work through the form carefully you will see that the tax amount will end up being just medicare-equivalent, rather than both social security- AND medicare-equivalent.

Click here to add your own comments

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

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 =)



Share this page:
Enjoy this page? Please pay it forward. Here's how...

Would you prefer to share this page with others by linking to it?

  1. Click on the HTML link code below.
  2. Copy and paste it, adding a note of your own, into your blog, a Web page, forums, a blog comment, your Facebook account, or anywhere that someone would find this page valuable.