In this episode, we unpack one of the most confusing aspects of clergy taxation: employment status. Are ministers employees, self-employed, or somehow both? We break down the IRS’s dual-status classification, explain who qualifies, and clarify why some clergy get W-2s while others receive 1099s. Whether you’re a senior pastor, interim minister, or guest speaker, understanding your tax identity is key to staying compliant and maximizing your benefits. Tune in for practical insights, real-world examples, and tips to navigate the unique world of clergy compensation.

Big changes are coming for Minnesota employers in 2026! Paid Leave MN is set to launch, giving workers paid time off for major life events but churches aren’t exempt. In this episode, we break down what this means for your payroll, how the new tax works, and what steps you need to take now to stay compliant. Whether you’re a church leader or handle payroll, this is your go-to guide for navigating Paid Leave MN without the headaches.

The IRS has a three-part reality check waiting for you.

The dual-tax status of clergy has a big impact on how your church’s payroll should be setup.

While the W-4 is a familiar tool for income tax withholding, it doesn’t play well with the unique tax treatment of ministers—especially when housing allowance and self-employment tax come into play.

Designating a housing allowance might sound complicated, but it really just takes a little planning and one key phrase to keep things running smoothly. Whether it’s through a board motion or a simple form, making it official each year helps your pastor and your payroll stay on the right track.

The last time 1099 reporting requirements were updated was in 1982. That’s changing in 2026.

The OB3 offers big news for working families in Tax Year 2026! Starting in tax year 2026, families will finally see a long-overdue increase in the Dependent Care Flexible Spending Account limit.