Members of the clergy

Three federal taxes are paid on wages and self-employment income—income tax, Social Security tax, and Medicare tax. Social Security and Medicare taxes are collected under one of two systems. Under the Self-Employment Contributions Act (SECA), the self-employed person pays all the taxes. Under the Federal Insurance Contributions Act (FICA), the employee and the employer each pay half of the Social Security and Medicare taxes. No earnings are subject to both systems.

Publication 517, Social Security and Other Information for Members of the Clergy and Religious Workers, covers the following topics about the collection of Social Security and Medicare taxes from members of the clergy, religious workers, and members of a recognized religious sect. The publication discusses:

• Which earnings are taxed under FICA and which under SECA.
• How a member of the clergy can apply for an exemption from self-employment tax.
• How a member of a recognized religious sect can apply for an exemption from both self-employment tax and FICA taxes.
• How a member of the clergy or a religious worker figures net earnings from self-employment.

This publication also covers certain income tax rules of interest to ministers and members of a religious order.

Are your ministerial earnings covered under FICA or SECA?

Ministerial earnings are the self-employment earnings that result from ministerial services.

The following table is from Publication 517. Determine the class to which you belong and read across the table to find if you are covered under FICA or SECA. Don't rely on this table alone.