Self-employment tax for clergy
Your church generally cannot withhold FICA as employer on ministerial wages. You may ask it to withhold extra federal income tax each paycheck (Form W-4) toward your estimated SECA — including housing that is excluded from federal income tax but still counts in your self-employment tax base, unless Form 4361 is approved.
Build my paycheck planFree planner and church-treasurer sheet. Your existing ClergyTrak account.
For most ministers, both regular ministerial pay and housing allowance are subject to self-employment tax, even when the housing allowance is excluded from federal income tax. If this is new to you, start here.
Extra federal withholding to cover SECA
Calculating…Across 26 paychecks over a full year
Per paycheck, for the SECA portion only. This is withheld as federal income tax, not FICA. Your full plan also considers income tax, existing withholding, payments, and remaining paychecks so amounts already covered are not counted twice.
This full-year illustration assumes no SECA exemption, other wages, honoraria, or deductible ministry expenses. It uses 92.35% of salary plus housing allowance and the 15.3% combined rate, below the Social Security wage limit. Salary is limited to $100,000 and housing allowance to $50,000 in this simple example. It does not calculate income tax, penalty protection, or a midyear catch-up amount. An approved exemption or other circumstances can change the result. Read IRS Publication 517.
Your church generally cannot withhold FICA as employer on ministerial wages. At your request, and with the church's agreement, it can withhold extra federal income tax from each paycheck (Form W-4) toward your estimated SECA. If Form 4361 is approved, that changes how ministerial earnings are treated. ClergyTrak helps calculate the amount and prepares a free sheet for your treasurer.
You can pay estimated tax each payday, provided enough reaches the IRS by each required deadline. Saving money in your bank account is different from paying the IRS.
Free account includes the planner and church-treasurer sheet. IRS withholding guidance · IRS payment guidance
Use salary excluding housing, housing allowance paid or parsonage value, and other ministerial earnings. Confirm your exemption status.
Your saved planner uses prior-year tax information, payments and withholding. A SECA estimate alone is not your complete federal tax target.
Give your church the extra amount you want withheld per paycheck using Form W-4, Step 4(c), under a voluntary withholding agreement. The church reports it as federal income tax withheld. If payroll withholding is unavailable, plan estimated payments instead. Review the amount when your pay or circumstances change.
The exclusion is generally limited to the lowest of your advance designation, actual eligible housing expenses, and furnished Fair Rental Value plus utilities. Documenting that limit does not remove housing from the SECA calculation.
Explore Fair Rental ValueIRS Publication 517. ClergyTrak provides estimates and organizational tools, not tax advice or tax filing.