Self Employment Tax

by Ryan
(Louisiana )

I work for a church and I have the 15.3% withheld every check. I use turbo tax to file my taxes. Do I need to pay the self employment tax when filing my taxes?

vickey's reply

Not sure I understand your question.

Are you saying the church is withholding and matching your SS and Medicare taxes?

Are you an ordained minister?

According to the IRS’s Publication 517: Social Security and Other Information for Members of the Clergy and Religious Workers. Social security and Medicare taxes are collected under two systems. Under the Self-Employment Contributions Act (SECA), the self-employed person pays all the taxes. Under the Insurance Contributions Act (FICA), the employee and the employer each pay half of the taxes.

If you are an ordained minister, your church should not be holding and matching FICA tax. Your earnings for the services you perform in your capacity as a minister are subject to SE tax unless you have requested and received an exemption.

If this is the case you may want to consult a CPA before filing your taxes.

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.

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.