Social Security tax

Can a church give their pastor who is receiving Social Security and is being paid a housing allowance a personal retirement amount and he doesn't have to pay social Security on it?

Comments for Social Security tax

Click here to add your own comments

Apr 11, 2021
Payments to a Minister's Individual Retirement Accounts is Taxable Income
by: Vickey

Amounts contributed by a church for a minister employee’s Individual Retirement Account (IRA) are included in the employee’s compensation on the Form W-2 and are subject to self-employment (Social Security) tax. (excerpt from ECFA.org's "Ministers Taxes Made Easy 2020": ebook.)

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.



Need training on how to use QBO or Aplos effectively for a church or better yet ...need an expert in either of those accounting software to do your monthly bookkeeping and/or payroll? See more on our accounting services!