Publication 517 - Social Security And Other Information For Members Of The Clergy And Religious Workers - 2011 Page 4
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30You do not need to request a separate exemp-
Readers. For tax purposes, Christian Science
or resident alien of the United States. For infor-
tion. For income tax purposes, the earnings are
readers are considered the same as ordained,
mation on figuring the tax, see
Self-Employment
tax free to you. Your earnings are considered
commissioned, or licensed ministers.
Tax: Figuring Net
Earnings, later.
the income of the religious order.
Coverage of Religious
Services covered under FICA at the elec-
Workers (Church
Ministerial Services
tion of the order. However, even if you have
Employees)
taken a vow of poverty, the services you perform
for your church or its agencies may be covered
Ministerial service, in general, is the service you
under social security. Your services are covered
If you are a religious worker (a church em-
perform in the exercise of your ministry, in the
if your order, or an autonomous subdivision of
ployee) and are not in one of the classes already
exercise of your duties as required by your relig-
the order, elects social security coverage for its
discussed, your wages are generally subject to
ious order, or in the exercise of your profession
current and future vow-of-poverty members.
social security and Medicare tax under FICA,
as a Christian Science practitioner or reader.
The order or subdivision elects coverage by
not SECA. Some exceptions are discussed
Income you receive for performing ministerial
next.
filing Form SS-16. It can elect coverage for cer-
services is subject to SE tax unless you have an
tain vow-of-poverty members for a retroactive
exemption as explained later. Even if you have
period of up to 20 calendar quarters before the
an exemption, only the income you receive for
Election by Church To Exclude
quarter in which it files the certificate. If the
performing ministerial services is exempt. The
Their Employees From FICA
election is made, the order or subdivision pays
exemption does not apply to any other income.
Coverage
both the employer’s and employee’s share of
The following discussions provide more de-
the tax. You do not pay any of the FICA tax.
tailed information on ministerial services of min-
Churches and qualified church-controlled orga-
Services performed outside the order.
isters, members of a religious order, and
nizations (church organizations) that are op-
Even if you are a member of a religious order
Christian Science practitioners and readers.
posed for religious reasons to the payment of
who has taken a vow of poverty and are required
social security and Medicare taxes can elect to
Ministers
to turn over to the order amounts you earn, your
exclude their employees from FICA coverage. If
earnings are subject to federal income tax with-
your employer makes this election, it does not
holding and employment (FICA) tax if you:
Most services you perform as a minister, priest,
pay the employer’s portion of the FICA taxes or
rabbi, etc., are ministerial services. These serv-
•
withhold from your pay your portion of the FICA
Work for an organization outside your re-
ices include:
taxes. Instead, your wages are subject to SECA
ligious community, and
•
and you must pay SE tax on your wages if they
Performing sacerdotal functions,
•
Perform work that is not required by, or
exceed $108.28 during the tax year. However,
•
done on behalf of, the order.
Conducting religious worship, and
you can request an exemption from SE tax if you
•
are a member of a recognized religious sect, as
Controlling, conducting, and maintaining
In this case, you are considered an employee
discussed below.
religious organizations (including the relig-
of that outside organization. You may, however,
ious boards, societies, and other integral
Churches and church organizations make
be able to take a charitable deduction for the
agencies of such organizations) that are
this election by filing two copies of Form 8274.
amount you turn over to the order. See Publica-
under the authority of a religious body that
For more information about making this election,
tion 526, Charitable Contributions.
is a church or denomination.
see Form 8274.
Lay employees. Lay employees generally are
You are considered to control, conduct, and
covered by social security. However, see
Elec-
Election by Certain Church
maintain a religious organization if you direct,
tion by Church To Exclude Their Employees
Employees Who Are Opposed to
manage, or promote the organization’s activi-
From FICA
Coverage, later, under Coverage of
Social Security and Medicare
ties.
Religious Workers (Church Employees).
A religious organization is under the author-
You may be able to choose to be exempt from
ity of a religious body that is a church or denomi-
Rulings. Organizations and individuals may
social security and Medicare taxes, including the
nation if it is organized for and dedicated to
request rulings from the IRS on whether they are
SE tax, if you are a member of a recognized
carrying out the principles of a faith according to
religious orders, or members of a religious or-
religious sect or division and work for a church
the requirements governing the creation of insti-
der, respectively, for FICA tax, SE tax, and fed-
(or church-controlled nonprofit division) that
tutions of the faith.
eral income tax withholding purposes. To
does not pay the employer’s part of the social
request a ruling, follow the procedures in Reve-
Services for nonreligious organizations.
security tax on wages. This exemption does not
nue Procedure 2011-1, 2011-1 I.R.B. 1, avail-
Your services for a nonreligious organization are
apply to your service, if any, as a minister of a
able at
ministerial services if the services are assigned
church or as a member of a religious order.
or designated by your church. Assigned or des-
Make this choice by filing Form 4029. See
ignated services qualify even if they do not in-
Requesting Exemption — Form
4029, later,
Christian Science Practitioners
volve performing sacerdotal functions or
under Members of Recognized Religious Sects.
and Readers
conducting religious worship.
If your services are not assigned or desig-
U.S. Citizens and Resident
Generally, your earnings from services you per-
nated by your church, they are ministerial serv-
and Nonresident Aliens
form in your profession as a Christian Science
ices only if they involve performing sacerdotal
practitioner or reader are subject to SE tax.
functions or conducting religious worship.
However, you can request an exemption as dis-
To be covered under the SE tax provisions
c u s s e d
u n d e r
E x e m p t i o n
F r o m
(SECA), individuals generally must be citizens
Services that are not part of your ministry.
Self-Employment (SE)
Tax, later.
or resident aliens of the United States. Nonresi-
Income from services you perform as an em-
dent aliens are not covered under SECA unless
ployee that are not ministerial services is subject
Practitioners. Christian Science practitioners
a social security agreement in effect between
to social security and Medicare tax withholding
are members in good standing of the Mother
the United States and the foreign country deter-
(not self-employment tax) under the rules that
Church, The First Church of Christ, Scientist, in
mines that you are covered under the U.S. social
apply to employees in general. The following are
Boston, Massachusetts, who practice healing
security system.
not ministerial services.
according to the teachings of Christian Science.
To determine your alien status, see Publica-
•
Services you perform for nonreligious or-
Christian Science practitioners are specifically
tion 519, U.S. Tax Guide for Aliens.
ganizations other than the services stated
exempted from licensing by state laws.
above.
Some Christian Science practitioners also
Residents of Puerto Rico, the U.S. Virgin Is-
•
are Christian Science teachers or lecturers. In-
lands, Guam, the CNMI, and American Sa-
Services you perform as a duly ordained,
moa. If you are a resident of one of these U.S.
come from teaching or lecturing is considered
commissioned, or licensed minister of a
the same as income from their work as practi-
possessions but not a U.S. citizen, for SE tax
church as an employee of the United
tioners.
purposes you are treated the same as a citizen
States, the District of Columbia, a foreign
Page 4
Publication 517 (2011)
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