Social Security Offset

by Sharon
(Syracuse, NY USA)

Can a church pay clergy housing and social security offset but no cash salary?

Ex) Housing $22,000 & SS Offset $1683 & Cash Salary $0

Comments for Social Security Offset

Click here to add your own comments

Aug 13, 2021
SECA Offset or Allowance Taxable Income
by: Vickey

You can pay a minister a social security offset or SECA allowance which is what that type of compensation is commonly called...

BUT...

please be aware that those "SS Offset" payments will be considered taxable income and subject to applicable payroll taxes.

Also, the total amount paid will be reported in Box 1 of the recipient's W-2, so I would make sure that the minister understands that even tho the SS Offset payments are being paid to help with the SE (self-employment) tax on the housing allowance...

they will owe additional income AND SE taxes on the "SS Offset" payments as well =)

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 Fringe Benefits.

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.