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Congratulations on being ordained or commissioned as a minister!  Your character and maturity is a testimony of God’s sanctifying work in your life and your humility before Him.  It’s a privilege to serve together with you.  The information contained in this packet is intended to help you understand some of the financial and employment issues related to ministers.  GCM is also shipping you a complimentary copy of a great resource in the Zondervan Minister’s Tax and Financial Guide.  Please use this book as your starting point in educating yourself on the issues of social security tax, parsonage allowance, social security exemption, and other financial topics on being a minister.  If you have additional questions, we strongly recommend you talk with a professional who is up to date on current practices in this field.

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Once GCM receives notice you’ve been ordained or commissioned, GCM will stop withholding social security (FICA) tax from your paychecks.  However, you now have the personal responsibility to directly pay this tax to the government yourself. 

• Please read Chapter 7 in the Minister’s Tax and Financial Guide to find out why this change must take place. 
• Please read Chapter 8 to find out your options for paying this tax.

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Please read Chapter 7 in the Minister’s Tax and Financial Guide to find out about the option of opting out of social security tax. Remember, you cannot make this decision to opt out simply because you think you can achieve a better investment return on those funds elsewhere (economic reasons). You may also want to talk with other ministers who have dealt with this option.  To obtain a copy of the IRS Form 4361, you may visit the IRS web site at www.irs.gov.  We’ve also included additional reading resources from the ECFA. Be certain that if you make this decision to opt out, it is for the right reasons.

If I decide to stay in the social security system, am I eligible for additional compensation from GCM to offset the social security taxes?

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• Ministers who communicate their decision to GCM to remain in the social security system within 3 months from receiving this Information Packet, will be eligible for the 7.65% social security bonus (FICA Bonus) retroactively to the time period they began receiving GCM wages as a minister. 
• Ministers who communicate this decision to GCM anytime after 3 months (from date of receiving this Info Packet), 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 the your email).
• Remember, you must begin to pay your own social security tax (SECA) from the point in time that you are paid GCM wages as a minister. See Chapter 8 in Zondervan Minister Tax & Financial Guide for options on paying this SECA tax. 

If I decide to opt out of the social security system, what do I do?

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3. Make an informed and well thought out decision about social security exemption. . (Remember as a minister, you cannot opt out of social security simply for economic reasons).

• If you decide to stay in the social security system, email hr@gcmweb.org, notifying GCM of your decision in order to be eligible for the 7.65% Social Security Offset.
• If you decide to opt out of the social security system, send an email to hr@gcmweb.org stating that you are conscientiously opposed to public insurance as a minister.
• Complete a new Support Goal Worksheet

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