Can churches classify paid workers as independent contractors to avoid paying FICA or withholding income taxes from them?

No. Churches cannot classify paid workers as independent contractors in an effort to “save money.” They must follow the law. Some ministers think they will save money on taxes if they treat themselves as self-employed for income tax purposes rather than as employees. This is rarely true, but even if it is, ministers and churches should follow IRS rules.

For more information, view our Ministers Tax Guide

 

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