how can church pay social tax for a pastor who only receives housing allowance

We are a brand new church. we only pay a pastor for housing allowance.

In this case, how can church report social tax (medical tax) for pastor?


can pastor report it (pay it) for himself next tax season?

If church want to pay half social tax, how can church do it? we never pay any tax to IRS until now.

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Mar 29, 2021
Housing Allowance is Nontaxable Income in regards to Income Taxes
by: Vickey

A minster can request voluntary "income tax" withholding; however, you cannot withhold it from the housing allowance as it is exempt from income tax.

The church can pay a SECA (Social Security) allowance, but it IS taxable income as must be reported in Box 1 of their W-2.

Don't forget that you cannot withhold or match FICA taxes on a minister.

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

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