Monthly stipend for a pastor

by Nora Santos
(Seattle, WA)

Does the church need to report to IRS the total stipend paid to the pastor. If the pastor is the incorporator and President of a church is he considered self-employed in regards to stipend he receives monthly?

Vickey's Reply

He is considered self employed in regards to the self employment tax.

As far as reporting his income, the method would depend on whether he was considered an employee of the church.

If he would report his income on a W-2.

If on a 1099-MISC.

If he exercises complete control over the church, he may not be considered an employee; however, you should research your local and federal labor laws to make this determination.

Click here to post comments

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

Need training on how to use QBO or Aplos effectively for a church or better yet ...need an expert in either of those accounting software to do your monthly bookkeeping and/or payroll? See more on our accounting services!