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 01 - January 2014, Form 1099, Form W-2, Ministers. Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s