Payroll has been deducting SS and Medicare from Pastor's pay check, is that correct?

by Karen
(Houston Texas )

Screenshot of weekly paystub from may

Screenshot of weekly paystub from may

I'm a volunteer at a small church helping with finances and in reviewing the books I noticed the Pastor is having SS and Medicare taxes withheld from the paycheck.

The person doing the payroll confirmed and the church is also filing them and paying them on the 941. However the housing allowance is not being included in the 941 payments.

They have been doing the same since 2021. My understanding is that the Church should not be paying for the SS and Medicare taxes and the Pastor should be making quarterly SE payments on the base payment plus the housing allowance.

Would you be able to confirm if my understanding is correct and if the church should amend the 941's for 2023.

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's W-2.

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.