Q: Can I legally increase my take-home pay without asking the church for more money?

A: Yes—optimize what you already receive (proper housing allowance designation, + social security exemption) so more of each dollar sticks. This is about structure and documentation, not bigger budgets.

Q: How exactly does the minister’s housing/parsonage allowance work?

A: If designated in advance by the board, you can exclude the lesser of (a) the allowance, (b) actual eligible housing costs, or (c) fair-rental value (furnished, plus utilities). It isn’t retroactive so you want to get this part right upfront!

Q: Am I a W-2 employee or should I be paid on a 1099?

A: Ministers are generally employees for income tax (paid on a W-2) but self-employed for Social Security/Medicare (SECA). Paying the lead pastor on a 1099 creates compliance risk; use W-2 with proper designations instead.

Q: Can I opt out of Social Security?

 A: Yes! Via Form 4361 on narrow, sincere religious-basis grounds—and it’s generally irrevocable. Social Security tax is 15% of your income, so this is an important decision. The good news is, with our program, we teach you how to opt-out and still get Social Security benefits like Medicare!

Q: What retirement options fit pastors best?

A: Common paths include church 403(b)/403(b)(9) plans and IRAs. The big wins are steady contributions, coordinated housing-allowance planning in retirement where available, and aligning insurance/benefits so your long-term plan isn’t Social Security only. (We cover “how to fund it now” in the program.)

Q: I’m bi-vocational—what changes?

A: Housing allowance applies only to ministerial income, and your ministerial income is subject to Social Security tax, unless you opt out. Your secular job remains subject to all the normal employment taxes.

Q: What board paperwork should we have on file?

A: Annual housing-allowance resolution (dated before payments), a clear compensation policy, minutes reflecting approval, and an approved IRS Form 4361. For housing, keep receipts and board minutes on file — these documents are your audit armor.

Q: Can the church host my side business or speaking income?

A: Keep ministry compensation separate from outside income. Using the church to process personal business can trigger issues with the IRS that we need to avoid. Use written agreements for honoraria/royalties and report outside earnings correctly. This outside income is your key to obtaining  Social Security benefits.