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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 Reliant 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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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 GCMReliant. 

Should I seek Professional Tax Advice?

GCM 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, GCM Reliant is not able to offer tax advice for your specific tax situation.

How do I request a parsonage allowance from

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Reliant?

Complete a GCM Reliant Parsonage Request Form and email it to hr@gcmwebhr@reliant.org.  You may find this form on StaffNet under the “Payroll” tab, in the “Forms” section. 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 email it to hr@gcmwebhr@reliant.org for approval.  Dave Meldrum-Green, our Director of Organizational Affairs & Treasurer reviews and approves all parsonage requests.

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What happens with my social security tax?

Once GCM Reliant receives notice you’ve been ordained or commissioned, GCM Reliant 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. 

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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. 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

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Reliant to offset the social security taxes?

Once a minister communicates his decision to GCM Reliant to remain in the social security system (thereby giving up the option to opt out of the system) then GCM Reliant will give that employee an additional 7.65% in salary from that point forward.  This additional GCM Reliant compensation is called a “Social Security Offset” and referred to as a FICA bonus (since it is designed to cover what would have previously been you FICA taxes).  

To be eligible for the “SS Offset,” you must send an email to GCM Reliant notifying us of your decision to remain in the social security system.  Please email hr@gcmwebhr@reliant.org and submit a new Support Goal Calculator. 

• Ministers who communicate their decision to GCM Reliant to remain in the social security system within 3 months from receiving this Information Packet, will be eligible for the 7.65% FICA Bonus retroactively to the time period they began receiving GCM Reliant wages as a minister. 
• Ministers who communicate this decision to GCM Reliant 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 your email).
• Remember, you must begin to pay your own social security tax (SECA - the language changes for self-employed individuals) from the point in time that you are paid GCM Reliant wages as a minister. See Chapter 7 in Zondervan Minister Tax & Financial Guide for options on paying this SECA tax. 

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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. GCM 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 GCM Reliant and your local church in writing that you are conscientiously opposed to public insurance as a minister, based upon religious convictions.

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1. Read the Zondervan Minister’s Tax & Financial Guide.

2. Complete the GCM Reliant Parsonage Request Form (See StaffNet Payroll tab). Send to hr@gcmwebhr@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@gcmwebhr@reliant.org, notifying GCM 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@gcmwebhr@reliant.org stating that you are conscientiously opposed to public insurance as a minister.
• Complete a new Support Goal Worksheet

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