| Clergy Tax Facts |
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Church Employees and Unemployment Compensation
Churches are exempt from federal unemployment regulations under the Federal Unemployment Tax Act (FUTA).Churches may choose to provide unemployment coverage for their employees but most do not. If you do not provide unemployment benefits for your church staff, please notify all employees and pastors of this fact and give reminders to staff on a regular basis. When you hire new staff, please inform them of this fact prior to hiring. Some ways to do this are to include it on your employment application form or state it when interviewing for open positions.
Get a better understanding of U.S. tax laws as they relate to pastors and churches with the Church & Clergy Tax Guide |
Every church and its employees want to feel confident that their compensation plan is reasonable and fair. |
To accomplish your church's mission and vision for ministry you need to effectively manage your church's finances |
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Clergy should not view this information as a substitute for professional advice. This information is subject to change, due to administrative rulings or interpretations and or technical corrections by the IRS. If legal advice or other expert assistance is required, the services of a competent clergy tax professional person should be sought.










