SS & MC Taxes

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If a minister is considered "Dual-Status" according to the federal tax guidelines is it permissible for the church to include in his salary the amount of SS & MC taxes that would be the responsibility of the company/church? Please advise.

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Comments for SS & MC Taxes

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Jan 31, 2012
social security
by: Anonymous

Our pastor would like the church to "allocate" part of his salary as socical security and not include it on the W-2. Is this legal? I do not find anything to support this on IRS web site.

Jan 31, 2012
Social Security Tax Allowance
by: Vickey

It is legal for a church to designate a Social Security Tax Allowance as part of a minister’s compensation. It is a good benefit as it helps offset the SECA tax he either pays quarterly or through voluntary withholding (see bottom of page).

It is not legal to neglect to include the amount of the allowance when reporting their wages.

The allowance would be included in box 1 of a W-2.

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