I.R.S guidelines state that Ordained Clergy are SELF-EMPLOYED, but are considered an employee who receives a W-2. Pastor wages are EXEMPT from Social Security and Medicare withholdings but pastors pay SELF-EMPLOYMENT TAX / SECA (15.3% of salaries and wages plus housing).
Federal and State withholdings are NOT required, but CAN be handled by the church if desired and have the church has the ability to do so. Churches with a Payroll Service can handle this for the church and pastor. Contact the Conference office if you have questions about this. Payroll Service Options
For assistance in calculating Pastor's SECA & Pension, click here for Excel spreadsheet: Pastor Salary Calculator Contact Jody at 317-832-8442 for further assistance.
Housing Benefit amounts are to be approved by the church BOA and noted in the BOA minutes annually PRIOR to each calendar year.
Wabash life, ltd and ad&d Benefits for Full-Time Pastors
Pastor's Professional Expenses CANNOT BE TREATED AS PART OF A PASTOR'S SALARY PACKAGE and must be handled under an Accountable Plan. If not reimbursed under an Accountable Plan, the employer must include all reimbursements as income on your W-2 form. Accountable Reimbursement Plan Guidelines