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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 Reliant. 

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.

How do I request a parsonage allowance from Reliant?

Complete a Reliant Parsonage Request Form and email it to hr@reliant.org. 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@reliant.org for approval.  Dave Meldrum-Green, our Director of Organizational Affairs & Treasurer reviews and approves all parsonage requests.

• Please read Chapter 4 in the Minister’s Tax and Financial Guide for information on parsonage allowance.

What happens with my social security tax?

Once Reliant receives notice you’ve been ordained or commissioned, Reliant will stop stops withholding social security (FICA) tax from your paychecks and we stop making Social Security payments to the government for you.  However, Now you now 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.

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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.

Ministers are allowed to Opt Out of the social security system

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, but application must be made to the IRS.

A minister is fully responsible for social security taxes until he receives certification from the IRS that his/her opt-out request has been granted. 

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 you cannot make  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 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,

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what do I do about the Employer Contribution for Social Security? 

A minister must communicate his/her Once a minister communicates his decision to Reliant to remain in the social security system (thereby giving up the option to opt out of the system) then Reliant will give that employee .For those ministers Reliant will offer an additional 7.65% in salary from that point forward.  This additional 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 taxesyou owe, the amount previously paid by the employer for Social Security).  

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 and submit .  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. 

• Ministers who communicate their decision to 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 Reliant wages as a minister. 
• Ministers who communicate this decision to 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 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 be aware that if you request a FICA bonus and then decide within the two years that you are opting out, you will also may be required to repay the bonus total you have received to date.

How do I request a parsonage allowance from Reliant?

Complete a Reliant Parsonage Request Form and email it to hr@reliant.org. 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@reliant.org for approval.  Dave Meldrum-Green, our Director of Organizational Affairs & Treasurer reviews and approves all parsonage requests.

• Please read Chapter 4 in the Minister’s Tax and Financial Guide for information on parsonage allowance.

Summary of steps:

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

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• 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.  

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