Self-employed status of Pastor

[RLM]

I was recently appointed as the new treasurer of our local assembly effective February 1st, 2008. Things with PowerChurch have gone very well to this point. Now I am faced with a situation that I could really use some sound advice for regarding what I need to be concerned about reporting to the IRS for our pastor. The main issue is the fact that up until (and continues to be the case) now a third party has been determining what withholding's, State & Federal taxes, etc. are to happen. Or so I was told....

As it turns out, that really isn't the case, our pastor is considered "self-employed" and the withholding that is being calculated and paid quarterly is for the two other 'paid' employees, of whom I am one.

I need a good resource to go to in order to determine exactly what needs to be withheld for our pastor. We pay, according to our pastoral contract, 1/2 of our pastor's Social Security withholding. There is also a sizeable monthly check that is issued to the pastor for a medical allowance. That money is NOT going into a MSA but rather a separate account that is being used as a flexible spending account. Another check is being cut and sent to his denominational affiliation to be applied to his retirement which is a Hartford account. I am really wondering what is reportable income and what is not.

I simply need a quick reference at this point so that I can bone up on what the right questions to ask would be when I get together with a CPA.

Any help or suggestions from this forum would be greatly appreciated.

[wellspring]

A great resource is Worth's Income Tax Guide for Ministers by B.J. Worth. Their contact info is 574-269-2121.

[RLM]

Thank you for the resource, I look into it right away. BOUGHT IT!

[wellspring]

You'll be glad you did. I refer to it frequently!