Whom to email: hr@reliantbenefits@reliant.org

Details: Send in a new job description reflecting your responsibilities as a commissioned or ordained minister.

Resources:

• Job Description

Whom to email:hr@reliant benefits@reliant.org

Details: Once we receive your email, we will send you this book. Use it as a starting point for educating yourself on the issues of Social Security tax, parsonage allowance, Social Security exemption and other financial topics on being a minister. 

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. 

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.

Details: The IRS classifies you in two categories.

Related to Federal Income Tax, you are employed by Reliant 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 and exemption from the government. If you do participate in the Social Security system, you will file SECA forms with your tax return.

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

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 hr@reliant.org for approval. Dave Meldrum-Green, our director of Organizational Affairs & treasurer, reviews and approves all parsonage requests. See Parsonage for more information. 

Resources: 

• Chapter 4 in Zondervan Minister's Tax and Financial Guide

Whom to email: hr@reliantbenefits@reliant.org

Details: Ministers are granted the ability to seek an exemption from Social Security if they meet certain requirements. By default you will remain in the system. A decision to seek exemption must be based on conscience, not convenience. An exemption results in ceasing contributions to both Social Security (retirement protection) and Medicare (medical insurance for those over 65). Remember, you cannot make the decision to seek exemption simply because you think you can achieve a better investment return on those funds elsewhere (economic reasons).

Reliant is not able to assist you with this decision. It is a completely personal decision. You may also want to talk with other ministers who have dealt with this option. 

A minister is fully responsible for social security taxes until he/she files Form 4361 seeking exemption, and receives the certification from the IRS verifying that his/her exemption request has been granted. 

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

Details: If you have a social security exemption from Social Security, your email must explicitly state, “I am exempt from the Social Security System because I am conscientiously opposed to receiving public insurance as a minister.”

Whom to email: hr@reliantbenefits@reliant.org

Details: 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: hr@reliantbenefits@reliant.org

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 bonus.

Resources: Support Goal on Staffnet

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

You can ask hr@reliant.org to guide you if you would like us to withhold your Social Security Obligation with FITA taxes by adjusting your W4 form.

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