MUST HAVE REFERENCE GUIDE

Site Map or Site Search

CHURCH ACCOUNTING PACKAGE

Is the 7.65% social security allowance hard and fast or can a different amount be offered

by Annie Spalding
(Harrisburg, PA)

Is the 7.65% social security allowance hard and fast or can a different amount be offered?

Comments for Is the 7.65% social security allowance hard and fast or can a different amount be offered

Click here to add your own comments

Jul 03, 2022
 SECA Allowance
by: Vickey

A social security allowance (sometimes called a SECA Allowance) is taxable income and MUST be included in Box 1 of a recipient's W-2, so a governing body can set any amount it wants to... for that taxable compensation.

Quick note... since it is taxable compensation... 7.65% of just his salary will not cover the total amount owed for the self employment (social security) tax as they will owe 7.65% SECA tax on that SECA Allowance amount as well =(
Jul 03, 2022
 Is the 7.65% social security allowance hard and fast or can a different amount be offered
by: Anonymous - MN

It has been figured and suggested by Jim Rickerts that 9.8% be used as the employer allowance to cover what would be normal employer half of the SET. 7.65% is the employer half and the balance of the 9.8% should cover the income tax on the allowance.

Click here to add your own comments

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

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 =)



Share this page:
Enjoy this page? Please pay it forward. Here's how...

Would you prefer to share this page with others by linking to it?

  1. Click on the HTML link code below.
  2. Copy and paste it, adding a note of your own, into your blog, a Web page, forums, a blog comment, your Facebook account, or anywhere that someone would find this page valuable.