Clergy request to withhold both employer and employee FICA
We are volunteer business managers for our church and as such have responsibility for preparation of W-2's and all other related aspects of the staff's salaries.
Our new minister has requested that both the employee's portion and employer's portion of his social security taxes be withheld from his salary.
His comment is that he has done this for twenty years. Everything we have read has clearly stated that such taxes must not be withheld from a minister's salary and that there is a difference in the application of FICA and SECA.
We would appreciate your comments on this most unusual situation.
You are correct. See this post regarding FICA taxes for links to resources you can give your pastor to show why you cannot withhold and match FICA tax.
If you have a denominational association office in your area, you might be able to contact someone there who can confirm this for your pastor.
Hope this helps,
Church Accounting Package
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