Taxes

An involuntary fee levied on individuals or corporations that is enforced by a government entity, whether local, regional or national in order to finance government activities.

  • Federal Income Tax – All wages are subject to Federal Income Tax, however ministers do not have to pay Federal Income Tax on properly authorized and validated housing allowance. 
  • SECA Tax (Self-Employed Contributions Act) – “social security” tax paid fully by the wage earner.  The IRS allows ministers to either have the local church withhold FICA taxes and treat them as a regular employee or to file as a self-employed person and pay the full SECA tax.  This tax is figured on both wages and housing allowance.
  • FICA  (Federal Insurance Contributions Act) – Commonly known as “social security tax” ½ is paid by the employer and ½ is deducted from the employee’s pay.
  • State Income Tax – Each of the states have their own tax commission and tax laws & forms.
  • Personal Property - Usually assessed as a percentage of the value of an item. They can fall under county or state taxes, depending on where you live. Not all states tax personal property, however, and what is subject to personal property tax varies widely from state to state.