Church Employee Ministers

If you are hired by a congregation and the church has the ability to terminate your employment or direct your activities, you are considered an employee of that church. According to IRS requirements, a pastor employed by a congregation must file income taxes the same as any other employee of a business or organization. Many pastors opt to be designated a church employee, as opposed to maintaining self-employment status, solely for retirement benefit purposes. At the end of the tax year, the governing board of the church or the congregation's treasurer should provide the pastor with a W-2 form to use when filing federal income taxes. This income statement should include only payment for services rendered directly to the church, such as presiding over worship services and meetings.
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