social security exemption

Ministers to Foreign Workers: How to Qualify for a Social Security Exemption

As a member of the clergy you are given the opportunity of exemption from Social Security taxes. Most working citizens are required by law to pay Social Security taxes on their income, however, pastors fall into a few specific groups of people that are exempt. If you are a credentialed minister, opposed to any form of public insurance due to religious beliefs, and are working at a tax-exempt religious organization, you may be exempt from paying Social Security taxes.

There are several groups of people that are eligible for Social Security exemption aside from pastors including foreign workers, students, and… Continue reading

Clergy Finances: Pastor Retirement Options

Throughout their careers, people will often begin preparing and saving for retirement, this is true for pastors as well. At some point in time a pastor will no longer be able to work on a full-time basis but just like everyone else, will need some form of financial compensation to ensure quality of life for him and his family.

These options may or may not be similar to more traditional workers’ options but just like when it comes to pastors taxes and clergy finance, pastor retirement options are still just as effective albeit slightly more non-traditional.

SIMPLE or Roth IRA’s… Continue reading

How to Make Sure Clergy Social Security Exemption is Approved

If they choose, clergymen are allowed social security exemption based on religious objections. However, in order for this to happen, they need to correctly fill out IRS Form 4361 in order to be exempt. It’s important that this form be filled out in an accurate and timely manner. Here are some tips on how to correctly fill out the form and reasons why it may be denied.

Unless they fill out a Form 4361 clergymen normally pay out social security taxes just like anybody else who is employed and earns taxable income. The IRS, however, allows church ministers to file… Continue reading