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

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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...


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 =)

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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 =)

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