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 1099, Form W-2, Internal Revenue Service, Ministers, Tax Information. Bookmark the permalink.

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