Clergy pay social security as self-employed

Determining the correct social security tax for clergy is often confusing. Clergy pay social security tax under the Self-Employment Contributions Act (SECA), not under the Federal Insurance Contributions Act (FICA). Clergy engaged in the exercise of ministry are always treated as self-employed for social security tax purposes. A congregation should never deduct FICA tax from the pay of a…

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Compensation Guidelines for Church Staff

Are you a church leader preparing compensation packages for multiple positions? Or an individual seeking guidance about your own compensation package? The 2018 Compensation Handbook for Church Staff offers everything you need—including expert articles and resources relative to ministry compensation. Churches often struggle to determine pay levels for their pastors and staff. And those in…

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Guide to Minister’s Compensation

You may find it helpful to begin by considering the goals of a compensation package. A church should provide its staff with adequate income so that they can fulfill their roles without undue concern about current and future financial needs. Freedom from financial anxiety lets the minister focus on his or her service. It also helps your church…

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Housing Allowance for Clergy Couples

Clergy couples are limited to the equivalent of one housing allowance between the two incomes, providing they live in the same location. In this instance, clergy need to be mindful of the amount requested by each spouse in the annual housing allowance resolution. Generally, any expense to provide or maintain the home can be used to justify…

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Important Tax Deadlines and Dates

April 17, 2018 2017 Individual Tax Returns Due  E-file or postmark your individual tax returns by midnight April 18, 2018. 2017 Tax Extension Form Due  Need more time to prepare your tax return? File your request for a tax extension by April 17 to push your tax deadline back to October 15, 2018. Clergy Financial Resources now…

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Continuing Education for Clergy

Clergy Continuing Education Churches should expect pastors to be involved in continuing professional and theological education programs which provide opportunities for personal development, enrichment of devotional life, and growth in pastoral effectiveness and competency. The purpose of continuing education is “professional growth” and “self renewal” as distinguished from program development, vacation, or  pastoral leadership retreats….

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Cost of Living Adjustments for Clergy Income

With so many line items making up a clergy’s compensation package, how exactly does one apply a cost of living adjustment (COLA) to their salary package. When a COLA is given to a clergy’s salary, the adjustment is made on their base + housing.  Since housing is a fixed number, the total adjustment is added…

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Taxable or Non-Taxable Clergy Income?

Generally, most income you receive is considered taxable but there are situations when certain types of income are partially taxed or not taxed at all. All sources of income are fully taxable and must be included in your income unless it is specifically excluded by law. To help clergy understand the differences between taxable and…

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