Employee (W-2) or Self-Employed (1099)?

If you are a pastor or employee of a Church of God church or related entity, you should receive a Form W-2 from your employer by no later than February 1. While many minister (and churches) continue to claim that the minister is “self-employed” and therefore should receive a Form 1099, the church polity of our denomination makes it almost universal that our ministers are employees of the local church for tax purposes – and thus entitled to receive a W-2 rather than a Form 1099. Based upon case law, it seems rather clear that Church of God ministers have a dual tax status – they are employees for federal tax purposes but they are self-employed for Social Security purposes.

While this topic is confusing and not subject to clarification in this forum, I would recommend that you visit our web site (www.benefitsboard.com) and review the Treasurer’s Manual where a more detail discussion on this issue can be found.

About benefitsboard

Art Rhodes is the President and CEO of the Church of God Benefits Board, Inc. - the administrator of the Ministers' Retirement Plan and the Church Loan Fund, Inc. The corporate offices of the Benefits Board are in Cleveland, TN.
This entry was posted in Form W-2, Internal Revenue Service, Ministers, Tax Information. Bookmark the permalink.

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