Pastor's outside income

by Joseph
(Phila, PA)

Can a pastor have his guest speaker fee made payable to his home church and have the home church use the funds for his pension contribution?

Comments for Pastor's outside income

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Oct 09, 2013
Can a pastor have his guest speaker fee made payable to his home church and have the home church use the funds for his pension contribution?
by: Sandi

It looks like it depends on a few things...
is the pastor your churches employee?
is your church authorizing the speaking?
If so; the checks would be made out to the church and would be used towards income/salary.

If the church has given a benefit package that includes an amount for pension, then this could be used to help cover that cost...
lot's of research needed to make sure you set up the benefit package correctly so not to cause inurement/private benefit...

look at the IRS pub 15 series and 517

I also found the following which might help:
Topic 417 - Earnings for Clergy
For income tax purposes, a licensed, commissioned, or ordained minister is generally treated as a common law employee of his or her church, denomination, or sect. There are, however, some exceptions such as traveling evangelists who may be treated as independent contractors. If you are a minister performing ministerial services, you are taxed on wages, offerings, and fees you receive for performing marriages, baptisms, funerals, etc.
For employment tax (social security and Medicare taxes) purposes, the services you perform in the exercise of your ministry are generally subject to self-employment tax. See Publication 517, Social Security and Other Information for Members of the Clergy and Religious Workers, for limited exceptions from self-employment tax.

Hope this helps!

Oct 17, 2013
outside income
by: Anonymous

Technically, if the check is made payable to the church, it becomes unrestricted money; therefore, the pastor cannot dictate how the money is to be used. If it is designated by the church making the check to be temporarily restricted money, they can condition how it is to be used, but it must be put into a restricted fund account first and then dispensed in accordance with the instruction of the check issuer.

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