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 payroll@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 |
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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.
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Understand your new employment status for your work related to your commissioned/ordained status. |
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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
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Make a well-informed decision about Social Security
| Re-read Chapter 6 in Zondervan Minister's Tax and Financial Guide |
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Highlights: - Ministers are granted the ability to seek an exemption from Social Security if they meet certain requirements.
- An exemption results in ceasing both Social Security (retirement protection as well as other assistance programs) and Medicare (medical insurance for those over 65 and disabled).
- By default, ministers remain in the Social Security system and are required to continue making payments directly to the IRS for their Social Security/Medicare coverage (see details below).
| Reliant is not able to provide counsel in this decision and cannot assist in filing forms with the IRS. It is a personal decision that each minister must decide based on their own convictions. We encourage you to read the relevant information in the Zondervan Minister's Tax and Financial Guide and talk with other ministers in your decision-making process. |
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Decide if you would like to claim your work with Reliant as related to your Commissioning/Ordination |
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By submitting your certificate to Reliant, you are choosing to apply your new tax status to your work with Reliant. This is not a required step. 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. 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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File Form 4361 with the IRS |
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See Claiming Exemption from Social Security Taxes for more information. A minister is fully responsible for paying social security/medicare taxes (SECA) until the IRS sends a certificate verifying that the exemption request has been granted. | Decide if you would like to claim your work with Reliant as related to your Commissioning/Ordination |
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By submitting your certificate to Reliant, you are choosing to apply your new tax status to your work with Reliant. This is not a required step. 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. 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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Notify Reliant of your Commissioning/Ordination and your Tax Decisions
1. Email a copy of your certificate to Reliant |
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Whom to email: payroll@reliant.org 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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Decide if you would like to take the FICA Bonus |
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Reliant offers a bonus to offset the additional obligation of tax previously paid by the employer for Social Security. The amount of that tax obligation is 7.65%. This bonus will increase your monthly salary and will be included in your monthly paycheck. Details: Once Reliant receives notification that you would like the bonus, you will receive a new salary offer. Ministers who communicate their decision to Reliant to remain in the social security system within 3 months of communicating their ordination/commissioning to Reliant 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 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.)
Whom to email: payroll@reliant.org | Research options for paying SECA to the IRS |
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Details: Remember, you must begin to pay your own Social Security/Medicare tax (now called SECA since you are considered self-employed) from the point in time that you are paid Reliant wages as a minister. See Paying SECA Taxes for more information Resource: Chapter 7 in Zondervan Minister's Tax and Financial Guide |
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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 payroll@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 Whom to email: payroll@reliant.org
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Details: Make sure to wait to submit a new Support Goal until you have received confirmation that your bonus request has been processed. Submitting a new Support Goal accepts and activates the FICA bonus. Resource: Support Goal on Staffnet
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5. Submit an updated jo |
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Details: Send a new job description to your program team liaison reflecting your responsibilities as a commissioned or ordained minister. Resource: Job Description our Reliant Program Team Liaison
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Additional Resources
