FICA Taxes (Social Security)

It is required that the church withhold and file Social Security (FICA) taxes for all compensated, non-ministerial church staff (secretaries, day school teachers, janitors/maintenance personnel, receptionists, etc.).  The combined social security tax rate is 15.3% of each employee’s wages.  This rate is equally divided between the employer and employee (7.65% each).  The church must then deposit the taxes (income taxes and both shares of FICA taxes) it withholds.  If a church has $50,000 or less in wages per year, they are required to deposit all taxes monthly on Form 8109 (Federal Tax Deposit Coupon).  If a church has more than $50,000 in wages per year, they are required to deposit their taxes on a semiweekly basis on the same form.  All employers subject to income tax withholding, social security taxes, or both, must file IRS Form 941 quarterly.  However, if the church has only one employee who is the minister or who only has ministerial employees, it need not file a 941 form unless the minister(s) opt to have the church withhold federal income taxes.