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  1. Taking parsonage as a tax status will not be an option. Since taking parsonage indicates that one is an ordained minister, we want to avoid that designation in secure locations. Every legal entity employee will be categorized as a more traditional employee where 7.65% of FICA is contributed by the employer and 7.65% of FICA comes from salary. 
  2. Following point number one, a legal entity employee will not be self-employed and will not receive a FICA bonus. Rather they will be considered a more traditional employee. We have found that the move from being self-employed to being a traditional employee has little tax consequences. In light of security concerns and the minimal impact on taxes it would be our recommendation to become an employee of the legal entity. However, one should consult a professional tax person prior to making the decision to move to the legal entity. The international team will work with you to make sure you have similar take-home pay.
  3. A legal entity employee cannot opt out of social security as opting out would be an indication of being an ordained minister. Thus a security risk. A legal entity employee must contribute to FICA in the more traditional manner.
  4. A legal entity employee will not be eligible for backpay. In the event that monthly gifts are not sufficient to cover salary, we will lower the employee's salary accordingly. The employee may self-track any missed pay and request a hardship bonus when funds become available.

Benefits

  1. Legal Entity employees will be enrolled in a 403b Retirement Plan. This is slightly different than the 403b9 plan that other Reliant employees have. 403b is a general non-profit account, while 403b9 is specifically for religious organizations. This may affect an employees ability to draw parsonage from the account when they retire.

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