The Compensation and Benefit Services team seeks to assist churches and pastors in making the right choice in matters related to tax considerations.
Many ministers have a dual tax status, which means they are considered employees of the church for federal income tax purposes and self-employed for Social Security and Medicare taxes.
This dual tax status can be confusing to both ministers and churches. Some accountants and tax professionals who do not understand this unique tax status may provide inaccurate or incorrect information to pastors or churches.
We offer consultations, workshops and events that focus on helping pastors and churches make informed decisions on tax matters. Following are some helpful links and resources.
Minister’s Tax Guide
- Section 1-4: Tax Preparation Guide
This guide provides detailed tax information to assist ministers with annual tax preparation.
- Section 5: Federal Reporting Requirements for Churches
This guide provides tax information for churches related to compliance with legal and IRS reporting requirements.
Ministers’ Tax Issues
This brochure explains the various tax issues unique to ministers.
Ministers’ Housing Allowance
This link provides answers to frequently asked questions about churches designating a portion of a minister’s salary as a housing allowance according to specific IRS guidelines.
Financial Checklist for Ministers
This brochure highlights areas for ministers to be informed concerning compensation and other financial matters.
2018 SBC Church Compensation Survey
This survey assists ministers and lay leaders as they evaluate equitable compensation for staff.
2020 IRS Standard Mileage Reimbursement Rate
Stay up to date with the current IRS standard mileage reimbursement rate for ministry-related expenses.