What is the correct income tax status for ministers?
In the U.S., ordained, licensed or commissioned clergy have dual tax status; the IRS considers them to be employees for purposes of income tax, and to be self-employed persons for purposes of social security. The important consequence of this is that ordained clergy pay the full 15.3 percent self-employment tax (SECA) for social security. Non-ordained employees are subject to FICA and have 7.65 percent withheld from their wages and 7.65 percent paid by the employer.
