by Peggy
(Columbia, SC, USA)
Can the church or should the church pay directly to the clergy half of the social security tax?
Vickey's Reply
Yes you can...if the church is financially able. I believe it is a very nice benefit for your clergy.
However, please be aware that it would be considered taxable income and would need to be included and reported along with his regular wages.
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 =)