IRS Publication 517 - Social Security And Other Information For Members Of The Clergy & Religious Workers

AAA

DEFINITION of 'IRS Publication 517 - Social Security And Other Information For Members Of The Clergy & Religious Workers'

A document published by the Internal Revenue Service that details how members of the clergy or other religious workers are to pay Social Security and Medicare taxes. These two types of taxes are collected through either the Self-Employment Contributions Act (SECA) system or the Federal Insurance Contributions Act (FICA) system, but not both. IRS Publication 517 indicates which forms of income are subject to SECA and which are subject to FICA rules.

INVESTOPEDIA EXPLAINS 'IRS Publication 517 - Social Security And Other Information For Members Of The Clergy & Religious Workers'

Whether or not a religious worker is covered under SECA or FICA depends heavily on the type of religious order. For example, religious workers who work for an organization in which a vow of poverty is taken are exempt from SECA, and are thus covered by FICA. A religious worker who does not take a vow of poverty is not exempt from FICA, and is thus covered by SECA. Since SECA is for self-employed workers, different rules apply to how net earnings are treated.

RELATED TERMS
  1. Self Employed Contributions Act ...

    A form of taxes that self-employed business owners must pay based ...
  2. Medicare

    A U.S. federal health program that subsidizes people who meet ...
  3. Social Security

    A United States federal program of social insurance and benefits ...
  4. Federal Insurance Contributions ...

    A U.S. law requiring a deduction from paychecks and income that ...
  5. Self-Employed Person

    An independent contractor or sole proprietor who reports income ...
  6. Economic Justice

    Economic justice is a component of social justice. It's a set ...
Related Articles
  1. 10 Tax Benefits For The Self-Employed ...
    Entrepreneurship

    10 Tax Benefits For The Self-Employed ...

  2. How To Owe Nothing On Your Federal Tax ...
    Options & Futures

    How To Owe Nothing On Your Federal Tax ...

  3. 7 Ways To Avoid Self-Employed Tax Penalties ...
    Options & Futures

    7 Ways To Avoid Self-Employed Tax Penalties ...

  4. Surviving On An Irregular Income
    Options & Futures

    Surviving On An Irregular Income

comments powered by Disqus
Hot Definitions
  1. Correlation

    In the world of finance, a statistical measure of how two securities move in relation to each other. Correlations are used ...
  2. Letter Of Credit

    A letter from a bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount. ...
  3. Due Diligence - DD

    1. An investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to ...
  4. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  5. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  6. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
Trading Center