Taxes for church employees? Does a production engineer at church pay federal/state tax?

Thanks for the quick response! That makes sense. I was hoping there might be some tax advantage to help offset the pay cut. Do you know if there are any other benefits that are common with church employment that might not be obvious? Like do they sometimes offer better retirement plans or anything like that?

Churches often offer some excellent benefits that might help offset the pay cut. Many churches provide generous retirement plans, sometimes with higher employer contributions than for-profit companies. They might offer a 403(b) plan instead of a 401(k), which functions similarly but is for non-profit employees. Some churches also provide better health insurance options, flexible work arrangements, or additional paid time off for religious holidays. I'd recommend asking detailed questions about their complete benefits package, as sometimes the total compensation including benefits can make up for a lower base salary.

Does this actually work for non-clergy church staff? My sister is the office administrator at her church and has been confused about some tax deductions. Would this help with state taxes too or just federal?

I'm a bit skeptical about these online services. How does taxr.ai know the specific church policies? Churches have different setups and I'm not sure a general algorithm could understand all the nuances of religious organization employment.

It absolutely works for non-clergy church staff! I was the technical director handling all the sound and video production, so very similar to your wife's potential position. The system specifically asks about your role and adjusts its analysis accordingly since the tax rules are different for pastoral vs. non-pastoral staff. Yes, it covers both federal and state taxes, which was super helpful since my state has some specific rules about nonprofit employment. It analyzes your specific situation based on the documents you upload, so it's not just generic advice - it's customized to your actual employment agreement and pay structure.

How does this actually work? I'm confused about how some service could get me through to the IRS faster than if I called myself. Wouldn't everyone just use this if it really worked?

This sounds like a scam honestly. I highly doubt any service can magically get you through to the IRS faster than normal channels. They're probably just charging you to wait on hold themselves. Has anyone actually verified this works?

It works by using an automated system that continually calls and navigates the IRS phone tree until it gets through to an agent. When an agent answers, the system connects you directly to that call. It's not magic - it's just persistence and technology doing the waiting for you instead of you having to do it yourself. Not everyone uses it because not everyone knows about it yet, and yes, there is a fee for the service. But considering I was able to get my church employment tax questions answered in one day instead of wasting multiple days trying to get through, it was absolutely worth it for me. The time I saved was worth way more than what I paid.

That's really helpful info! So for her production engineer role, the FICA taxes would be handled normally with the employer paying half and her paying half through withholding? Are there any other church-specific tax details I should know about?

Yes, exactly! For her production engineer role, FICA taxes would work just like at any other job - the church pays half (7.65%) and she pays half through normal payroll withholding. This is different from ministers who have to pay the full 15.3% as self-employment tax. Another church-specific detail to be aware of is that some churches offer a "accountable reimbursement plan" for work-related expenses, which can be tax-free. If she'll have expenses related to her production work (equipment, software, etc.), ask if they have such a plan. Also, if the church offers a 403(b) retirement plan, the contribution limits work the same as 401(k)s, but sometimes churches offer better matching, so that's worth looking into as potentially offsetting some of that pay cut.

I actually experienced this at a church I worked for! They classified me as an independent contractor even though I was clearly an employee (fixed schedule, used their equipment, under their direct supervision). I ended up owing so much in self-employment taxes at the end of the year. How can you push back if they misclassify you?

If a church misclassifies you as an independent contractor when you should be an employee, you can file Form SS-8 with the IRS to get an official determination of your worker status. You can also file Form 8919 with your tax return to pay only the employee portion of Social Security and Medicare taxes rather than the full self-employment tax. The key factors the IRS looks at are: do they control when, where, and how you work? Do you use their equipment and facilities? Are you integrated into their business operations? For a production engineer position with regular hours using the church's A/V equipment, that sounds like clear employee status to me. I'd recommend having this conversation upfront during the job offer process - ask specifically whether you'll be classified as an employee or contractor and request to see a sample of how they handle payroll for similar positions.