Church Payroll 101: The Right (and Wrong) Way to Pay Pastors

Описание: Understanding clergy tax laws can be confusing, and getting it wrong can lead to costly mistakes. In this episode of the Church Advisory Podcast, hosts Tim Wilkins and Steve Chaney, CPA break down how church payroll, housing allowance, and self-employment taxes impact pastors and church staff.

We cover:
Do pastors get a W-2 or a 1099? Understanding clergy tax classification
How pastors pay Social Security & Medicare taxes (and why it’s different from regular employees)
Common church payroll mistakes that can cost pastors thousands in unexpected taxes
How housing allowance affects a minister’s tax liability
Why rent-free doesn’t mean tax-free – the hidden costs of parsonage benefits
Church payroll best practices to ensure compliance and protect pastors from tax surprises

If you're a pastor, church administrator, or financial decision-maker, this episode is for you.

Not sure if your payroll is set up right? Let's take a look.
Schedule a free payroll assessment: https://chaneyassociates.com/contact/

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Chapters:
0:00 - Welcome & Recap of Housing Allowance
1:00 - Are Pastors Employed or Self-Employed?
6:00 - Understanding Dual Tax Status & Payroll Taxes
9:00 - How to Check Your Pay Stub for Errors
10:30 - Common Payroll Mistakes Churches Make
20:00 - Should a Pastor Ever Decline Housing Allowance?
23:30 - Why Churches Should Offer a Self-Employment Allowance
29:00 - How to Calculate the Cost for Your Church
32:00 - Setting Up Payroll Withholding for Ministers
48:00 - Closing Thoughts & Where to Get Help

About Us:
For over 23 years, Chaney & Associates has partnered with churches across the country, providing accounting, payroll, and financial guidance tailored to ministry needs. As trusted ministry advisors, we’re passionate about equipping churches to manage their resources effectively and expand their mission.

DISCLAIMER:
This podcast is for informational purposes only and is not a substitute for professional advice. Always consult your CPA or legal advisor before making financial decisions.