Minister Dual Tax Status

Definition

A unique classification in the U.S. tax code where most ordained ministers are treated as employees for federal income tax withholding purposes but as self-employed individuals for FICA (Social Security and Medicare) purposes. This means a minister's church does not withhold or pay the employer share of payroll taxes, and the minister must pay self-employment tax on ministerial earnings via Schedule SE. This dual status creates complex filing mechanics that differ from both standard employees and typical self-employed individuals.