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Procedure Name:Working with Reliant as a Commissioned or Ordained Minister
Scope:All Staff
Revision Date:January 26, 2024
Last Review Date:January 26, 2024

Please review the process of claiming your status as a commissioned or ordained minister in relation to your work with Reliant.

You are not required to claim your work as a commissioned/ordained minister to your work with Reliant. When you submit your certificate, your tax status is immediately changed and cannot be reverted unless your job role changes where you are no longer performing ministerial services. 


1. Educate yourself on the tax implications

Read the ECFA Minister's Tax and Financial Guide.

https://www.fcmmbenefits.org/ministers-tax-financial-guide-2024-2023-tax-returns

  • Ministers are granted the ability to seek an exemption from Social Security if they meet IRS requirements. 
  • An exemption results in ceasing contributions to and eligibility for both Social Security (government retirement protection as well as other assistance programs) and Medicare (government medical insurance for people with disabilities and people over 65). 
  • By default, ministers remain in the Social Security system and are required to continue making payments directly to the IRS for their Social Security/Medicare coverage (see details below). 

Consult a tax professional.

Reliant is unable to offer tax advice for your specific situation, so we strongly encourage you to talk with a professional who is up-to-date on current practices and understands ministerial tax implications. You are eligible for taxable reimbursement of some tax preparation and advisory fees. 

Tax options governed by the IRS and Social Security related to Parsonage (Minister's Housing Allowance) and Social Security Exemption are available to licensed/ordained/commissioned ministers. Know your reporting responsibility and the consequences of choosing these options.

Understand your IRS employment status related to your commissioned/ordained status.

The IRS classifies commissioned/ordained ministers into two categories:

  1. Related to Federal Income Tax, you are employed by Reliant. Reliant withholds and pays Federal Income Tax on your behalf and sends you a W-2.
  2. Related to Social Security and Medicare, you are self-employed. Reliant stops withholding FICA taxes and paying the employer portion on your behalf. FICA tax includes portions for Social Security and Medicare, and the tax rate is 15.3%, which you are still obligated to pay unless you receive an exemption from the government. If you participate in the Social Security system, you file SECA forms with your tax return.

Decide if you want to stay in the Social Security System.

Stay in the Social Security System

Remember, you must begin to pay your own Social Security/Medicare taxes-both the employee and the employer portion- (now called SECA since you are considered self-employed) from the point in time that Reliant received your certificate and begins recognizing you as a minister. You also become eligible to receive a FICA bonus. Please review Paying SECA Taxes (excerpt in drop-down below) 

We also recommend reviewing Chapter 7 in Zondervan Minister's Tax and Financial Guide and research options for paying SECA to the IRS for additional information. 


Paying Seca Taxes


Procedure Name:Paying SECA Taxes
Scope:All Staff
Revision Date:Sept 2, 2025


Reliant's role as the employer of the minister per the IRS guidelines:

These requirements are both fulfilled by Reliant as the employer that is paying the Minister's wages.  

  • Requirements #1: Forms 941 filed with the IRS quarterly by the employer (the taxes withheld and paid for the minister and reported on the 941 are their FEDERAL income taxes)

  • Requirement #2: The W-2 is provided to the minister and the IRS. (No Social Security/Medicare wages or taxes are withheld/reported on minister earnings on the W2)


Please read Working with Reliant as a Commissioned or Ordained Minister before reviewing the following options below. 

Minister's Tax Guide

You can also review this tax guide webpage highlighting information provided by GuideStone.


If you inform us that you are ordained/commissioned and you do not have an approved exemption from the IRS then you are required to pay the 15.3% SECA (previously called FICA prior to being a minister) including both the 7.65% employee and 7.65% employer portions of social security and medicare taxes. As a minister, you are eligible to receive a FICA bonus that as an employee you can use to pay your SECA tax obligation for the social security and medicare tax that was previously paid by Reliant (the 7.65% employER portion). This Fica bonus increases your monthly salary and is included in your monthly paycheck to be used towards paying the employer portion of SECA taxes on your own. Even though you are choosing to stay in the Social Security system, the employEE portion is not deducted from your paycheck anymore once you become a minister, but per the IRS, you are still responsible for paying both the employEE portion (7.65%) as well as the employER portion (7.65%). Remember, you must begin to pay your total Social Security/Medicare taxes- both the employee and employer portion- (now called SECA since you are considered self-employed) from the point in time that Reliant receives your certificate and begins recognizing you as a minister. Please follow up with your tax advisor for questions related to filing and paying taxes.

Although Reliant is not able to give tax advice, we are able to assist if you need help with these steps outlined below on how to handle your SECA taxes. You can either ask Reliant to increase your Federal Tax withholding (to include excess taxes withheld that can later be used towards your 15.3% SECA tax liability) OR you can pay the IRS your SECA taxes quarterly (you file and pay the taxes on your own). 

Option 1: Reliant Payroll Federal Tax Withholding

The employee can utilize their Federal W4 form to request that Reliant (the employer) withhold additional federal income tax from the employee's Reliant paychecks. When the employee file's their taxes, any tax withholding that they requested that exceeds their federal taxes due can be used towards the amount the employee owes for their minister's social security tax (SECA) liability. As a general rule of thumb, the employee will want to ensure their federal withholding exceeds the amount they will owe in federal taxes by the 15.3% SECA amount, to ensure they will have enough excess withholding to cover that SECA liability. 

Example: if the employee normally owes about $6,000 in federal taxes a year ($500 per month) and their combined wages (including parsonage) is about $7,000 a month, they'll need to ensure their MONTHLY federal withholding is $500 + ($7,000 X .153 = $1071) for a monthly total federal tax withholding of $1,571. They can ensure this by add the extra withholding amount per the steps listed below. 

Please also utilize the tip box on the Tax Info & Forms (Link to Federal W4) when submitting your W4.

To withhold extra Federal taxes please complete the W-4 form with lines 1 through 5 per your "normal" settings. On line 4(c) add the extra taxes you want withheld in addition to your normal Federal taxes.

The amount on line 4(c) is "in excess of the normal taxes". For example, if someone's "normal" Federal settings are married filing jointly (both spouses work - Step 2. multiple jobs box is checked) and they typically see $400 withheld for Federal taxes, if they put "$500" on line 4(c) that person would see a total of $400 + $500 =$900 withheld from their paycheck as Federal taxes. 

To calculate what amount to use for line  on your W-4 form, you can....

  1. Estimate the amount for 4(c) by doubling your FICA bonus (so that you can pay both the employER portion (given to you as the FICA Bonus) and employEE portion). Circumstances vary, but this method tends to be accurate although potentially slightly higher than needed, which then yields a tax refund for the minister when they file their taxes.  
  2. Seek counsel from a professional tax adviser on how to fill out your W4 form including box 4(c). See Professional Fees for details on reimbursing these costs.
  3. CAUTION: If you elect to claim child credits on your W4 form, your FEDERAL tax withholding will likely be very minimal. If your desiree is to use this method for withholding excess FEDERAL taxes to offset your SECA taxes due, you need to make sure your W4 form settings result in Reliant withholding excess FEDERAL income tax, (which in most cases electing to claim the child credit would hinder that goal.) 
Option 2: Self-Paid Quarterly Estimated Taxes

The minister pays estimated taxes (tax estimates paid can include federal and SECA or just what they owe for SECA) directly to the IRS.

Form 1040-ES is filed by the minister on 4/15, 6/15, 9/15, and 1/15.

To access the IRS payment site see https://www.irs.gov/payments. 

Opt Out of the Social Security System

File Form 4361 with the IRS. Reliant may request an electronic copy of the Minister's IRS-approved Form 4361 for our records as a safeguard for the employee and Reliant as an employer if ever needed by the IRS regarding the minister's tax status.

A minister is fully responsible for paying social security/medicare taxes (SECA) until the IRS sends a certificate verifying that the exemption request has been granted. See Claiming Exemption from Social Security Taxes for more information. 

Reliant is not able to provide counsel in this tax decision and cannot assist in filing forms with the IRS. It is a personal decision that each minister must decide based on their own convictions.  

Understand and plan your Parsonage Allowance

Parsonage allowance, also called housing allowance, is one of several special tax benefits applied to qualified ministers. Read the following page to learn about parsonage and begin thinking about the amount you may wish to designate to parsonage: Parsonage. 

2. Notify Reliant of Your Commissioning/Ordination and Your Tax Decisions

By submitting your certificate to Reliant, you are choosing to apply your new tax status to your work with Reliant. Once you submit your certificate, we must immediately change your tax status to no longer withhold FICA taxes. Once this change is made, we can not revert the tax settings unless the Minister has a job role change in which they are no longer performing ministerial services.

Helpful page regarding certificate requirements - Commissioned, Licensed and/or Ordained Minister Certificate Requirements

If you would like to claim your work with Reliant as that of a Commissioned/Ordained Minister, proceed to the next section. Otherwise, no further action is necessary.

Email a copy of your certificate and let us know your tax decisions to payroll@reliant.org. A Reliant director will review the certificate. Once approved, you will be notified, and your tax settings will be changed.

Stay in the Social Security System

If you inform us that you are staying in the Social Security system, you will receive a 7.65% FICA bonus to offset your tax obligation for Social Security that was previously paid by Reliant. This bonus increases your monthly salary and is included in your monthly paycheck.

Remember, you must begin to pay your own Social Security/Medicare tax (now called SECA since you are considered self-employed) from the point in time that you are paid Reliant wages as a minister.

See Paying SECA Taxes for more information. Review Chapter 7 in Zondervan Minister's Tax and Financial Guide and research options for paying SECA to the IRS.

https://www.fcmmbenefits.org/ministers-tax-financial-guide-2024-2023-tax-returns
Opt Out of the Social Security System

If you have an exemption from Social Security, email payroll@reliant.org stating, “I am exempt from the Social Security System because I am conscientiously opposed to receiving public insurance as a minister.”

This is the official statement employers are required to collect as an assurance that the minister is properly informing their employer, Reliant, of their tax decisions as a minister.  

In some cases, Reliant may also request an electronic copy of the Minister's IRS-approved Form 4361 for our records.  The collection of this form is a safeguard for the employee and Reliant as an employer, to ensure Reliant has an electronic copy saved to our records if ever needed as a part of interactions with the IRS regarding their minister's tax status.

Once you receive our email that your Certificate and tax decision has been processed, please submit a new Support Goal in TOOLBOX https://toolbox.reliant.org/account/sign-in?return=%2Fsupport-goals. 

Stay in the Social Security System

You will see your minister status reflected on your support goal. Make sure to select "no" to having opted out of Social Security. 


Opt Out of the Social Security System

You will see your minister status reflected on your support goal. Make sure to select "yes" to having opted out of Social Security. 

Complete a Parsonage Request form if you wish to receive Minister's Housing Allowance (Parsonage). 

Once your parsonage amount is approved, it becomes effective on the next applicable pay period. To change your parsonage amount in the future, complete a new Parsonage Request form and share it with payroll@reliant.org for approval. Dave Meldrum-Green, our director of Organizational Affairs & treasurer, reviews and approves all parsonage requests.

Reference Chapter 4 in Zondervan Minister's Tax and Financial Guide for details on Ministerial Housing Allowance. 

https://www.fcmmbenefits.org/ministers-tax-financial-guide-2024-2023-tax-returns

Contact your Program Team Liaison to submit a new job description reflecting your responsibilities as a commissioned or ordained minister. 

Additional Resources



Questions regarding commissioning, ordination, parsonage, FICA Bonuses?

Email

payroll@reliant.org

DepartmentHuman Resources 



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27 Comments

  1. Sarah Swann

    user-231f6 this is also a PDF on Solomon so I'm assuming this page needs to move into the field manual as well. Just leaving comments on pages to move to remind us.  

  2. user-1a794

    Sarah Swann, just conferring with Mike. This page does need to go into the field manual.  It is written to the missionary. 

  3. Sarah Swann

    user-1a794, Mike Swann I wasn't sure where to put this page in the field manual.  Let me know where you want it to go. I put it here b/c this seemed like a possible place.  I updated the GCM wording to Reliant and all the email addresses. 

  4. Mike Swann

    Sarah Swann, that looks great!

  5. Tonya Bartels

    Unknown User (ed.courtney@reliant.org) I have a question regarding the FICA Bonus.  This is actually calculated at 8.25% of their monthly salary to also cover tax on the bonus.  It that something you think I should add or will that lend to confusion? I could just add a sentence at the end of that section so they are informed of the actual calculation so that they do not question it later.  What do you think?

     

    1. Unknown User (ed.courtney@reliant.org)

      Great. I added that in. I think it makes sense there.

      1. Tonya Bartels

        Cori changed some of the wording and she thinks it will add confusion, so I am going to take it back out.  Sorry that I am causing you extra work today.

  6. Mike Swann

    Unknown User (ed.courtney@reliant.org), this page says ready and not vs. published. Looks like there were some changes to it that need updating.

    1. Unknown User (ed.courtney@reliant.org)

      user-1a794 It looks like you made some changes to this page. Is it ready to be published?

  7. Keva Ambre

    Not sure if this will help, but here's an email I sent explaining this to a missionary who didn't understand why his support goal had the FICA Bonus: 


    You might remember submitting your ordination paperwork to Reliant so that you could receive parsonage. There were a few shifts that happened as a result of  parsonage eligibility:

    1. You began receiving tax-free income based on your minister’s housing allowance amount.
    2. Although still employed by Reliant, the government now considers you self-employed when it comes to Social Security and Medicare taxes.  
    3. This means you now have to start paying both the employee and employer portions of Social Security & Medicare yourself (called SECA). *Before you started receiving parsonage, these taxes were automatically deducted from your paycheck and sent to the government. Now it is no longer deducted from your paycheck and you have to send it.


    To make up for this expense, Reliant offers a "FICA Bonus" allowing more in your take-home pay ($256 a month) so you can turn around and pay your Social Security and Medicare taxes (SECA). An easy way to remember it is, “FICA pays for SECA.” *Please talk to your accountant about how to set up these payments since Reliant no longer makes them for you.


    If you want to stay in the Social Security system, you must continue paying this SICA tax. Your portion is $256 a month. That’s why your support goal is $256 higher than before. I believe Reliant thought you were already covering your Social Security and Medicare taxes. So, when they discovered you weren’t, they added that FICA Bonus onto your support goal so that you would have the funds to pay that tax so you could stay in the Social Security system. So, that’s why you now have the goal of $5,212.


    If you want to drop your goal back down to $4,956, we certainly can remove the FICA bonus. But, that would mean you’d be paying those Social Security and Medicare taxes out of your regular take-home pay (to the tune of $256 a month).

    1. Tonya Bartels

      We do send everyone the tax guide and Barb, Erin or I have an extensive conversations explaining it. Thank you for carrying the torch on this one!

  8. Dave Meldrum-Green

    Great work, Tonya Bartels user-2ce9f Barb Secklerfor your extensive conversations explaining the ministerial info we send out to our newly ordained/commissioned ministers. It is much appreciated! 

  9. Tonya Bartels

    Mike Swann Barb Seckler I was thinking about this last night and some this morning. I don't have time to flesh this out at the moment,but we keep running into the issue of the missionaries going through the steps that are based off of decisions they need to make for their taxes, and then after the parsonage and FICA Bonus is set up and they either have their book and they now looking at it after the fact, or sometimes they have pulled all the triggers for parsonage and FICA Bonus before they even get the book. I feel like we need to get the book to them possibly even before they send in the Cert. I am wondering if we can change the wording in the first info box to say something like "if you are unsure or unaware of your tax decisions, please email benefits@reliant.org a request the tax guide before you send us your certificate and change your tax relationship with us and the IRS" I am sure there is a better way to say that, but you get the gist. Or, we need to move #7 up in the list, because that decision effects the FICA Bonus and I think the order may be messing with they way the missionaries are submitting their information and then they start thinking through the decisions. They need the opportunity to read and understand before they start making "choices" that they are obviously not understanding that is what they are doing.  The other thought I had was defining the forms. For example: by submitting this form or this request you are telling us that you have made this decision regarding your taxes (or whatever the specific thing is). Again, not that we have time to dive into this too much, but I wanted to capture my thoughts and ask if y'all had any ideas how to make this more clear and helpful for our missionaries. 

    1. Barb Seckler

      Tonya Bartels  I like that idea.  I'd be open to discussing that and making this page reflect that process as well as adding links to the new pages we created, once we've fine tuned them.

    2. user-1a794

      YESSSS YESSSS  YESSS !! THIS is what I've been trying to say for ages !!!!!! Please yes. As soon as i can find them, i'll include emails that i've wirtten to try to address this. 


      Sending the notification of ordination should NOT be the FIRST thing !!! once we have ordination, we must stop FICA.  but people havent yet learned how to manage that.   !!!  learning and choosing should be first .  AT one point i re-wrote this page making Notification like the third or later step.  #! must be LEARN about the impact. 


      thank you T O N Y A !!!! 


      ps. I was copying you on emails to / from malaysia this week were to give assurance that I'm educating folks, hoping to help with communciation tools. 

  10. Tonya Bartels

    user-98d24 I removed the contact card on this page because we are moving this process to the payroll inbox and the contact card was for benefits. If possible, can we create an Employment contact card with the payroll inbox email listed on it, and have both Kaitlin and I listed? Then we can add that here. 


    1. user-98d24

      Sure thing Tonya Bartels, I'll work on adding the contact card today. 

  11. Dave Meldrum-Green

    Barb SecklerTonya Bartelsuser-98d24 Barb and Tonya, I have been meaning to read and review this Solomon page for a couple of months now. I finally got some time to look it over. I made comments to Amber about changes to improve the way we word things. Unfortunately, I realize now that I only tagged Amber on the comments. If either of you have any questions or would like to discuss any of the wording changes I am proposing, let me know. Thanks!

    1. Barb Seckler

      Dave Meldrum-Green 

      Hi Dave – user-f4a2e revamped this page to try to make it more streamlined and to remove excessive wording that got confusing for staff.  Tonya Bartels  and I looked over it. I am fine with most of the changes you suggested and tagged Deborah on them.  She was trying to be less wordy so she may come back on some of the suggestions to try to not re-state words that can be implied within the same sentence. 


      I’m coping Deborah on this reply,  I don’t think Tonya needs to re-review this page as I did a run-through and no significant content changes were suggested and I want to value her time.  FYI user-98d24 .

      1. user-f4a2e

        Dave Meldrum-Green Thank you for looking this over!! I made some changes, incorporating your wording while also trying to keep it succinct. Thanks!

  12. Barb Seckler

    Dave Meldrum-Green I want you to know we also recorded a series of videos on this topic that does go into more details that will be assigned to ministers on Learn very soon. 

  13. Dave Meldrum-Green

    Ministers' Tax Guide
    Barb Seckler This link just seems to take you back to the same Solomon document. Is there an actual online GuideStone Guide it should be linking to? 

  14. Barb Seckler

    user-f4a2e- CJ Whitehad some good feedbcak for us about adding a step 5 on Step 1 educate to be thinking about parsonage and their numbers earlier in the process so that when they send in the certificate so they can get that parsonage benefit sooner by being prepared for all the items in step 2. Would you want to review this page for that tweak or would you want ES to do that?

  15. user-a4ad0

    Tonya Bartels - does the first drop down also need to be edited with the URL rather than instructing them to request the book?

    1. Tonya Bartels

      Not going to lie user-a4ad0, I thought I already did this. But now I actually did, and I added multiple places, wherever we referenced a chapter since it's a link. It is ready for your review and approval. 

  16. Jenni Saniuk

    Tonya Bartels given our conversation today about staying in social security, does anything on this page need to change?

    1. Tonya Bartels

      Jenni Saniuk I have already updated this page to reflect the changes in the process.