Do I have to pay Social Security Quarterly?
by Thomas G
I'm a new bi-vocational minister. My question(s) is(are) simply: do I have to pay social security and medicare taxes quarterly or can I pay it once a year? Are Social Security taxes and Medicare taxes included in my Federal Taxes that I pay every April? Any info would be great, Thanks,
Thomas Gvickey's reply
No, Social Security and Medicare is not automatically included in the federal taxes you pay in April. Depending how you file your underpayment could include income taxes and/or self-employment taxes (Social Security and Medicare).
Yes...you should make quarterly estimated tax payments if
you estimate you will owe any taxes.
As a minister, you have to pay your Social Security and Medicare tax payments by using the SECA (The Self-Employment Contributions Act) method.
SECA tax is basically the business owner's or minister's version of the FICA tax that employees pay. Like FICA, it is made up of your contributions to both the Social Security and Medicare programs.
Please be aware that the basic tax rate for the self-employed (ministers) under SECA is 15.30 percent.