Social Security Tax Increase Starting January 1, 2013
November 7, 2012
Over the past two years, there has been a “payroll tax holiday” in effect. This reduced the employee’s share of Social Security from 6.2% to 4.2%. This “payroll tax holiday” is scheduled to expire on December 31, 2012. Non-clergy employees will have an additional 2% of Social Security tax withheld from their paychecks starting on…
Social Security Tax Paid by the Church
September 29, 2010
Social security benefits are financed through two tax systems. Employers and employees each pay the “FICA” tax, which for 2007 amounts to 7.65% of an employee’s taxable wages (a total tax of 15.3%). Self-employed persons pay the “self-employment tax,” which for 2007 is 15.3% of net self-employment earnings. Clergy are always considered to be self-employed…
