Ten Fundamentals of Clergy Tax by Jon Wiebe #sdc2013
"Highly effective churches utilize holistic stewardship practices." George Barna, 9 Habits of Highly Effective Churches 2 Corinthians 8:20-21 1. The structure of clergy compensation is evidence of the congregation's stewardship. 2. Clergy are almost always employees for income tax purposes Form W-2, Form 1040 3. Clergy pay social security as self-employed. must be ordained, licensed, or commissioned employer responsibility congregation match is taxable Quarterly payments 4. Clergy rarely qualify to opt out of social security. theologically object to tax not for financial reasons 5. The housing allowance can be the clergy's best tax friend. Designation vs. Exclusion 6. 4 Tests (lower of 4) Reasonable compensation Actual Expenses Amount Designated Fair Rental Value (15% of Tax Assessment) 7. ...