Business Expense Reimbursements

An Accountable Reimbursement Arrangement is necessary to avoid taxation on business expense reimbursements.

See P&B Memo #11 – Auto and Other Business Expense Reimbursements

Enter all non-taxable/accountable business expense reimbursements below.

Non-Cash Benefits

Non-Cash Benefits paid by the church are generally not subject to income tax. Please be sure to specify whether amounts below are actually subject to SECA. The final compensation report relies upon the accuracy of the information you provide below.

Cash Benefits

Cash benefits include wages, bonuses, Social Security reimbursements, non-accountable reimbursements, and taxable fringe benefits.

See P&B Memo #4 – Strategies for Structuring Ministerial Compensation

SECA Liability

It is important to understand the distinction between self-employment social security payments (SECA), and those social security taxes which employers are required to withhold and match (FICA) for an employee who is not self-employed for social security purposes (typically a lay-employee). The FICA taxes should never be withheld from the compensation of a minister. Many churches reimburse ministers for a portion or all of their SECA liability. SECA reimbursements represent additional taxable compensation in the year paid to the minister for both income and social security tax purposes.