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Page History
| Procedure Name: | Working with Reliant as a Commissioned or Ordained Minister |
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| Scope: | All Staff |
| Revision Date: | January 26, 2024 |
| Last Review Date: | January 26, 2024 |
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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. |
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The following is included in this guide:
FAQ
ECFA - Ministers and Social Security Tax
ECFA - Ministers Opting Out of Social Security
Opting Out of Social Security Excerpt from the Minister's Tax and Financial Guide
Where do I begin?
The first thing you should do is read the Minister’s Tax and Financial Guide. This book contains a wealth of the information you will need to properly understand your options and responsibilities as a minister. Next, you’ll want to request a parsonage allowance from Reliant.
What happens with my social security tax?
Once Reliant receives notice you’ve been ordained or commissioned, Reliant stops withholding social security (FICA) tax from your paychecks and we stop making Social Security payments to the government for you. Now you have the personal responsibility to directly pay this tax to the government yourself. The current rate of Social Security tax for Ministers is 13.5%.
- Please read Chapter 6 in the Minister’s Tax and Financial Guide to find out why this change must take place.
- Please read Chapter 7 to find out your options for paying this tax.
Should I seek Professional Tax Advice?
Reliant strongly encourages you to contact a professional tax advisor to guide you in your personal tax responsibilities now that you are commissioned or ordained. Unfortunately, for legal reasons, Reliant is not able to offer tax advice for your specific tax situation.
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Please read Chapter 6 in the Minister’s Tax and Financial Guide to find out about the option of opting out of social security tax. The decision must be based on conscience, not convenience. 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, what do I do about the Employer Contribution for Social Security?
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To be eligible for the “SS Offset/Fica Bonus,” you must send an email to Reliant notifying us of your decision to remain in the social security system. Please email hr@reliant.org. After Reliant receive notification, the minister will receive a new salary offer. He/she must submit a new Support Goal Calculator to accept and activate that bonus.
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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 Solomon 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.
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If I decide to opt out of the social security system, what do I do?
Please read the section titled “Opting Out of Social Security” in Chapter 6 in Minister’s Tax & Financial Guide very carefully. Follow the instructions given in the Guide. You may also want to contact a tax or accounting professional for additional advice. Reliant is not able to assist you with this decision. It is a completely personal decision. Remember this is a permanent decision.
You will, however, need to inform both Reliant and your local church in writing that you are conscientiously opposed to public insurance as a minister, based upon religious convictions.
Please be aware that if you request a FICA bonus and then decide within the two years that you are opting out, you may be required to repay the bonus total you have received to date.
How do I request a parsonage allowance from Reliant?
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Additional Resources
- Claiming Exemption from Social Security Taxes
- Paying SECA Taxes
- Parsonage
- ECFA Ministers' Tax and Financial Guide
- Ministers' Tax Guide by Guidestone
- Worth's Income Tax Guide for Ministers. You can contact them at 574-269-2121
Summary of steps:
1. Read the Zondervan Minister’s Tax & Financial Guide.
2. Complete the Reliant Parsonage Request Form. Send to hr@reliant.org.
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@reliant.org, notifying Reliant of your decision in order to be eligible for the 7.65% FICA bonus.
- If you decide to opt out of the social security system, send an email to hr@reliant.org stating that you are conscientiously opposed to public insurance as a minister.
- Complete a new Support Goal Worksheet
4. Research additional resources below or seek professional tax and financial advice if necessary.
Attached Resources:
Additional Resources and Information for Ministers
- “Ministers and Social Security Tax” provided by: Evangelical Council for Financial Accountability. www.ECFA.org.
- “Ministers Opting Out of Social Security” provided by: Evangelical Council for Financial Accountability. www.ECFA.org.
- Excerpt from “Chapter 6 - Retirement and Social Security; Opting Out of Social Security” from 2012 Minister’s Tax & Financial Guide.
- FAQ
Reference to Additional Resources:
a. Church and Clergy Tax Guide by Richard R. Hammer.
Can be ordered through NACBA at 800-898-8085 or http://www.nacba.net
b. Income Tax Law for Ministers and Religious Workers by Worth Tax and Financial Service.
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- . They are located in Warsaw, Indiana.
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- IRS Publication 517, “Social Security and Other Information for Members of the Clergy and Religious Workers”
- Commissioned, Licensed and/or Ordained Minister Certificate Requirements
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