Article 1, Volume 4 February 22, 2016
Pastors need to be aware of their contract agreements with churches
Pastors who receive an IRS Form 1099 for their total service are considered contractors, and legally, in my research, do not qualify to have a retirement account set up.
Also, they lose when they have to pay their own social security and medicare taxes.
The opposers would argue that this consequence is not true in their churches. I mean, you can do a lot of things and consider them to be right. But there are IRS laws that govern the way you should do some church things.
Let me give you two potential real case examples.
Thirty years ago, Rev. Zamo(names changed to protect the innocent) agreed to pastor a church in Virginia. The Swinghigh church agreed to pay him $35,000 a year and set up a retirement program. Recently, Rev. Zamo retired with a $2,000 a month pension for life.
Whereas, thirty years ago Rev. Kittomos, agreed to pastor for the same amount of money and accept a monthly contract from Swinglow church, and pay his own social security taxes, medicare expenses, and health benefits. Monthly, he deducted all his expenses from his payment as a private contractor.
Recently, Rev. Kittomos, retired and had no benefits from his years of service at Swinglow church.
Pastors and ministers, Negotiate! Negotiate! But when you do, know what you are doing.
--------------------------------------------------------------------------------------------------------------------
People who read this article also read:
wbcfallschurch@blogspot.com
esh60@blogspot.com
myopinions999@blogspot.com
copyright 2016. Grady E. Bryant
Pastors need to be aware of their contract agreements with churches
Pastors who receive an IRS Form 1099 for their total service are considered contractors, and legally, in my research, do not qualify to have a retirement account set up.
Also, they lose when they have to pay their own social security and medicare taxes.
The opposers would argue that this consequence is not true in their churches. I mean, you can do a lot of things and consider them to be right. But there are IRS laws that govern the way you should do some church things.
Let me give you two potential real case examples.
Thirty years ago, Rev. Zamo(names changed to protect the innocent) agreed to pastor a church in Virginia. The Swinghigh church agreed to pay him $35,000 a year and set up a retirement program. Recently, Rev. Zamo retired with a $2,000 a month pension for life.
Whereas, thirty years ago Rev. Kittomos, agreed to pastor for the same amount of money and accept a monthly contract from Swinglow church, and pay his own social security taxes, medicare expenses, and health benefits. Monthly, he deducted all his expenses from his payment as a private contractor.
Recently, Rev. Kittomos, retired and had no benefits from his years of service at Swinglow church.
Pastors and ministers, Negotiate! Negotiate! But when you do, know what you are doing.
--------------------------------------------------------------------------------------------------------------------
People who read this article also read:
wbcfallschurch@blogspot.com
esh60@blogspot.com
myopinions999@blogspot.com
copyright 2016. Grady E. Bryant
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