Ordained Minister part of the year

I work for a church we have a pastor that was ordained part way through 2018 does he have to pay SE taxes of the full amount of his pay? Or pay SE only after he was ordained?

Comments for Ordained Minister part of the year

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Mar 31, 2019
Meet the Criteria of Being a Minister
by: Vickey

Nonminister employees are paid under the FICA system and pay their taxes accordingly.

QUALIFYING ministers are under the SECA system and pay SE (Self-employed) taxes.

An employee is treated as a minister for payroll tax purposes if they meet the criteria for being a minister by having ministerial credentials. This can be an ordained, licensed or commissioned minister depending on the church.

I'm assuming your Pastor did not meet the criteria for being a minister for tax purposes until he was ordained.

Once he was credentialed, then he should have been treated as a minister from that time forth and his payroll at that point changed.

Hopefully you gave him 2 different W-2s or stopped matching and withholding FICA at the moment he became ordained....which meant his W-2 might have looked a little strange, but was correct anyway =)

Either way ...he only pays SE tax on the qualifying ministerial income.

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