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OUR SERVICES

Church Payroll Service

We help with the Payroll Service of individual churches. Since pastors are employees and self-employed for tax purposes, the Payroll Service method is different from that of ordinary people. For example, the housing allowance of pastors is excluded from federal income tax, but is considered income for social security and Medicare taxes. Therefore, the reporting method on the W-2 form and the 941 form is different from that of ordinary people. If you leave it to Solomon Tax, we will provide Payroll Service for pastors and other staff members according to IRS regulations.

Pastor Tax Reporting

The IRS considers clergy to be self-employed for Social Security and Medicare tax purposes. Therefore, clergy must pay both taxes on their own, unlike regular employees. IRS Publication 517 states that clergy must pay 15.3% of Social Security and Medicare taxes quarterly on Form 1040 ES Voucher. Alternatively, clergy can make an agreement with their church to have Payroll Service pay these taxes as federal income tax and then pull them out as Social Security and Medicare taxes when they file their personal tax returns.

Because pastors have dual status as both employees and self-employed individuals, they can file Schedule C when filing their taxes. Keeping track of self-employment expenses can help you save on taxes.

Counseling for new and retired/retired pastors

When hiring a new pastor, the amount of tax the pastor has to pay will vary depending on how the pastor's case fee is paid. If possible, we will consult on a case fee payment method that will reduce the pastor's tax burden as much as possible and thus increase the case fee.

Did you know that a farewell gift given as a token of appreciation when a pastor moves to another church or a retirement gift given to a pastor who is retiring from ministry is subject to at least 25% tax? Although the church members give the gift of love to God as a token of their gratitude to the retiring pastor, it can place a large tax burden on the pastor.

Solomon Accounting & Tax provides consulting services to help you pay the least amount of taxes while delivering more love to your pastors.

US citizens residing abroad
Tax Reporting and Asset Reporting for Permanent Residents
(FATCA & FBAR)

U.S. citizens and permanent residents must report all income to the IRS each year, even if they live abroad. Also, even if you live in the U.S., you must report to the IRS if you have a bank account in your name overseas that has a deposit or withdrawal of $10,000 or more. You must also report to the IRS if you have income from the sale of foreign assets. Solomon Tax Accounting can help you.

Tax related consultation

"Does a church, as a non-profit organization, have to report taxes?"

"How do you provide Payroll Services for pastors and employees?"

"How do I issue a W-2 and a 941 form?"

"How do I report my pastoral taxes?"

"How should staff working at a church-affiliated Korean school or daycare be paid?"

"Does a church have to pay taxes when it makes a profit from a bazaar?"

"Should a church pay taxes on the income it receives from renting its buildings or land?"

Also, if you have any questions about inviting a new pastor, hiring new ministers or staff, or anything else, please contact Solomon Tex directly. We are available for consultation via phone or online video chat.

Please call 321-750-6774.

Tax related consultation

Does a church that is a non-profit organization have to report taxes?

How do you provide Payroll Services for pastors and employees?

How do I issue a W-2 and a 941 form?

How do I file a pastor's tax return?

How should staff working at a church-affiliated Korean school or daycare be paid?

Does a church have to pay taxes when it makes money through a bazaar?

Should a church pay taxes on the income it receives from renting its buildings or land?

If you have any other questions, please contact Solomon Tex directly. We will consult you through online video chat. You can solve your questions for a small consultation fee. The fee is $90 for the first 30 minutes and $60 for every 30 minutes thereafter.

IRS Audit Response

Have you received a letter from the IRS?

Don't ignore it or be afraid. But you must promptly take action on the letter's request within the date stated in the letter. If you do not agree with the IRS's letter, you must send a response letter within 30 days. Please contact Solomon Tax and we will help you quickly and accurately.

IRS Tax Relief Application

For those who feel overwhelmed by IRS taxes, penalties, and interest that are difficult to handle personally or for business purposes, the IRS offers an Offer in Compromise (OIC) program. Get relief from financial stress with an OIC. To find out if you qualify for the benefits of an OIC, visit the Offer in Compromise Pre-Qualifier

Call Solomon Accounting & Tax now at 321-750-6774 and we will be happy to assist you.

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