| Procedure Name: | Paying SECA Taxes |
|---|---|
| Scope: | All Staff |
| Revision Date: | October 21, 2020 |
| Last Review Date: | May 5, 2023 |
Minister's Tax Guide
This page highlights information also found in the Zondervan's Minister's Tax Guide. https://www.fcmmbenefits.org/ministers-tax-financial-guide-2024-2023-tax-returns.
The church (employer) may withhold additional federal income tax to cover the minister's social security tax (SECA) liability. The Minister can apply these tax payments towards their SECA tax liability when they file their taxes.
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 with 4 allowances and they typically see $200 withheld for Federal taxes, if they put "$400" on line 4(c) that person would see a total of $200 + $400 =$600 withheld from their paycheck as Federal taxes.
To calculate what amount to use for line on your W-4 form, you can....
- Estimate the amount by doubling your FICA bonus. 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.
- Seek counsel from a professional tax adviser. See Professional Fees for details on reimbursing these costs.
- Contact payroll@reliant.org for an educational consultation. Reliant cannot advise you on your tax withholding but we can assist with you with personalized estimates that you can use in your calculations to determine the appropriate amount for line 4(c).
This Option requires two things from the Employer (Church/Ministry):
These requirements are both fulfilled by Reliant as the employer/"church" that is paying the Minister's wages.
Requirements #1: Forms 941 filed with the IRS quarterly by the church.
- Requirement #2: The W-2 is provided to the minister and the IRS.
The minister pays federal income taxes and social security taxes (SECA) directly to the IRS. Form 1040-ES is filed by the minister on 4/15, 7/15, 10/15, and 1/15.
To access the IRS payment site see https://www.irs.gov/payments.
