Pastor FICA vs SECA

by Raymond Hoskie
(Franklin, VA )

My Pastor has a full time job and pastor's part time. He does not have regular office hours at the church. He has been treat as an employee, issued a W-2 and also the church has been paying one half his FICA and Medicare. This has been going on for five years. How should this be corrected and get him on the SECA side of the system? Should he be considered as an employee or self employed?

Comments for Pastor FICA vs SECA

Click here to add your own comments

Jan 14, 2013
by: Anonymous

This is a good place to start:
Most pastors are "duel" employed. See IRS form SS-8 if unsure.
The church does not take out tax unless the paperwork has been done to request it by the pastor. Most churches do not pay the taxes, if given as a benefit(no form done) the amount is included in box 1 of the W2.
Housing allowance goes in box 14.
"This has been going on for five years. How should this be corrected"
It is best to contact an accountant and find out if there is an actual problem, if there is, do the corrections they suggest and any W2c, W3c's needed. I tend to call the IRS for questions and they have been very helpful.

Jan 19, 2013
Pastor FICA vs SECA
by: RH

Thanks anonymous! We are fine. Just want to make sure.

Jan 25, 2013
An additional question on this topic.
by: Anonymous

Our Pastor gets payed as an employee, (and has no housing allowance.)The church pays the FICA tax for him, as an employee, as he requested. Is this OK...any legal issues to consider for the future? Also, when he files his return would he then NOT have to fill out the SE tax form. How would he concider the salary, as regular employee income?
Thanks for your help!

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 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!