Social Security for Pastor

Fund Accounting, Accounts Payable, Accounts Receivable, Payroll

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Flemingtl
Posts: 38
Joined: Thu Dec 16, 2010 12:38 pm

Social Security for Pastor

Post by Flemingtl »

I am trying to setup Payroll for the Pastor and was wondering if since he is considered Self Employed for Social Security and is responsible for both sides of the Soc.Sec. deductions, what is the correct way to set up the SS deduction?
Would it be correct to set up a new Item as "Pastor's Soc. Sec." with a rate of 10.4% and select only that one and not the "Employee SSI" or the "Employer SSI" items for his checks?

Flemingtl
Posts: 38
Joined: Thu Dec 16, 2010 12:38 pm

Re: Social Security for Pastor

Post by Flemingtl »

Thanks for thinking about helping me, I think I just found my answer on another website.
That one says that "...a church cannot withhold Soc. Sec. or Medicare from a Pastor's salary, we can only withhold additional Fed. Taxes if that is what he chooses to have done instead.

THANKS!
Terry

NeilZ
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Joined: Wed Oct 08, 2003 1:20 am
Location: Dexter NM
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Re: Social Security for Pastor

Post by NeilZ »

Flemingtl wrote:Thanks for thinking about helping me, I think I just found my answer on another website.
That one says that "...a church cannot withhold Soc. Sec. or Medicare from a Pastor's salary, we can only withhold additional Fed. Taxes if that is what he chooses to have done instead.

THANKS!
Terry

That's correct. The pastor is considered an employee by the IRS for income tax purposes, but is considered Self Employed for SS & Medicare. What we do here is have extra taken out as FITW to cover that Self-Employee tax bill.
Neil Zampella

Using PC+ since 1999.

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