church pays minister's medicare tax

Should that amount be be included in his w-2 wages?

Comments for church pays minister's medicare tax

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Mar 02, 2021
Need More Information
by: Vickey

Not sure what you mean by the church "pays" the minister's medicare tax?

Please give us a little more detail. For example, some churches give their ministers a SECA allowance to help cover the self employment taxes that most ministers have to pay on their compensation.

It is completely taxable and must be included in Box 1 of the minister's W-2.

Mar 02, 2021
Clergy Medicare payment
by: lewis robbins

The church pays Medicare directly on behalf of the pastor.

Mar 07, 2021
Cannot Withhold and Match FICA Taxes for a Minister
by: Vickey

A minister is considered to have a "dual status" with the IRS. Please see more on that here: https://www.freechurchaccounting.com/ministers-taxes.html

OR click on "Resources" in the top menu bar and go down to "Minister Taxes".

If you want "IRS" documentation on why a church CANNOT withhold and match FICA (Social Security and Medicare) taxes for a minister, see their "audit" guide: https://www.irs.gov/pub/irs-utl/ministers.pdf

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