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Read Zondervan Minister's Tax and Financial Guide

Please email benefits@reliantpayroll@reliant.org to request a complimentary copy of the current year's copy of this book. If the address on file with Reliant is not the best address, please include the best shipping address in the email.

Consult a tax professional


Details: We strongly encourage you to talk with a professional who is up-to-date on current practices in this field. Reliant is unable to offer tax advice for your specific situation. You are now eligible for taxable reimbursement of some tax preparation and advisory fees. See Professional Fees.

There are tax options related to Parsonage (Minister's Housing Allowance) and Social Security Exemption that are available to ordained and commissioned ministers. These options are governed by the IRS and Social Security. You should know your reporting responsibility and the consequences of choosing these options.


Understand your new employment status for your work related to your commissioned/ordained status.

 

Details: The IRS classifies you in two categories.

Related to Federal Income Tax, you are employed by Reliant who continues to withhold and pay FITA taxes on your behalf. At year end you receive W2's, and you file accordingly when you do your tax return.

However, you are classified as "self-employed" for purposes of Social Security and Medicare. Reliant will stop 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%.  Please keep in mind you are still obligated to pay Social Security taxes unless you receive an exemption from the government. If you do participate in the Social Security system, you will file SECA forms with your tax return.

Resource: Chapter 6 in Zondervan Minister's Tax and Financial Guide 


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1. Email a copy of your certificate to Reliant

Whom to email: benefits@reliantpayroll@reliant.org

The certificate will be reviewed by a Reliant director and once it has been approved, you will be notified and your tax settings will be changed.

2. Notify Employment Services about your tax decisions


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titleStay in the Social Security System


Decide if you would like to take the FICA Bonus 

Reliant offers a bonus to offset the additional obligation of tax previously paid by the employer for Social Security. The amount of that tax obligation is 7.65%. This bonus will increase your monthly salary and will be included in your monthly paycheck.

Details: Once Reliant receives notification that you would like the bonus, you will receive a new salary offer. 

  • Ministers who communicate their decision to Reliant to remain in the social security system within 3 months of communicating their ordination/commissioning to Reliant will be eligible for the 7.65% FICA Bonus retroactively to the time period they began receiving Reliant wages as a minister. 

  • Ministers who communicate this decision to Reliant anytime after 3 months will be eligible for the 7.65% FICA bonus beginning with the next available pay date. (You will only be eligible for up to 3 months of retroactive FICA bonus and must request that in your email.) 

Whom to email: benefits@reliantpayroll@reliant.org

Research options for paying SECA to the IRS

Details: 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

Resource: Chapter 7 in Zondervan Minister's Tax and Financial Guide



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titleOpt Out of the Social Security System

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

This statement is 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.

Whom to email: benefits@reliantpayroll@reliant.org


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

 

Details: Once your parsonage amount has been approved, it will become effective on the next applicable pay period. To change your parsonage amount in the future, simply complete a new Parsonage Request form and share it with benefits@reliantpayroll@reliant.org for approval. Dave Meldrum-Green, our director of Organizational Affairs & treasurer, reviews and approves all parsonage requests. See Parsonage for more information. 

Resource: Chapter 4 in Zondervan Minister's Tax and Financial Guide

Whom to email: benefits@reliantpayroll@reliant.org


4. Submit a new Support Goal


Details: Make sure to wait to submit a new Support Goal until you have received confirmation that your bonus request has been processed.

Submitting a new Support Goal accepts and activates the FICA bonus.

Resource: Support Goal on Staffnet


5. Submit an updated job description


Details: Send a new job description to your program team liaison reflecting your responsibilities as a commissioned or ordained minister.

Resource: Job Description

Whom to email: Your Reliant Program Team Liaison


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