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Page History
There are three steps in the process of claiming your status as a commissioned or ordained minister in relation to your work with Reliant. First, research and understand the tax implications, decide on how you would like to handle those tax implications, and, finally, communicate those decisions to Reliant. Please read over the rest of the page for more details on these steps.
Understand the tax implications
Read Zondervan Minister's Tax and Financial Guide |
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| Please email benefits@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 |
Overview
This page will help you understand some of the financial and employment issues related to becoming an ordained or commissioned minister.
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Steps to take
1. Notify Employment Services you are ordained/commissioned; include copy of your certificate |
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Please note: As soon as Reliant receives a certificate of Commissioning/Ordination, we will immediately cease withholding and remitting the employee's FICA (Social Security and Medicare) taxes to the federal government. This obligation to report and pay taxes for FICA converts to a similar tax (SECA), which the employee is now responsible to remit directly to the federal government. Please see your Minister's Tax Guide for further information (see Step 3 below). If you are unsure or unaware of your tax decisions, please email benefits@reliant.org a request the tax guide BEFORE you send us your certificate and change your tax relationship with us and the IRS. |
2. Update your job description
Details: Send in a new job description reflecting your responsibilities as a commissioned or ordained minister.
Resource: Job Description
Whom to email: benefits@reliant.org
3. Read Zondervan Minister's Tax and Financial Guide
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. 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
6. Complete a Parsonage Request form if you wish to receive Minister's Housing Allowance (Parsonage)
Make a well-informed decision about Social Security
| Re-read Chapter 6 | in Zondervan Minister's Tax and Financial Guide | Whom to email|||||||||||||||
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Highlights: | benefits@reliant.org||||||||||||||||
7. Make a well-informed decision about Social Security | ||||||||||||||||
| Details: Ministers
| An exemption results in ceasing contributions to both Social Security (retirement protection) and Medicare (medical insurance for those over 65). Remember, you cannot make
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Resource: Chapter 6 in Zondervan Minister's Tax and Financial Guide
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Notify Reliant of your Commissioning/Ordination and your Tax Decisions
1. Email a copy of your certificate to Reliant |
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8. Notify Employment Services about your decision |
Whom to email: benefits@reliant.org |
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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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If you are exempt from Social Security, skip down to Additional steps if you opt out of the Social Security system |
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2. Notify Employment Services if you want the bonus | |||||||||
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3. Submit a new Support Goal | |||||||||
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| You can ask benefits@reliant.org to guide you if you would like us to withhold your Social Security Obligation with FITA taxes by adjusting your W4 form.
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2. Submit a new Support Goal
Resource: Support Goal on Staffnet
Review of steps to take
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1. File Form 4361 with the IRS
Details: Please be aware that if you request a FICA bonus and then decide within two years that you are opting out, you may be required to repay the bonus total you have received to date.
Resource: IRS Form 4361 (Download)
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3. Complete a Parsonage Request form if you wish to receive Minister's Housing Allowance (Parsonage) | |||
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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@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 |
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Whom to email: benefits@reliant.org |
4. Submit a new Support Goal |
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Details: Make sure to wait to submit a new Support Goal until you have |
If you are staying in the Social Security system:
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received confirmation that your bonus request has been processed |
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. Submitting a new Support Goal accepts and activates the bonus. Resource: Support Goal on Staffnet |
5. Submit an updated job description |
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Details: Send in a new job description reflecting your responsibilities as a commissioned or ordained minister. Resource: Job Description Whom to email: mr@reliant.org |
If you are opting out of the Social Security system:
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Additional Resources
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