Top Ten Mistakes By Ministers

Title: Top Ten Mistakes By Ministers
Category: Church Policy Issues
Subject: Ministerial Mistakes

Top Ten Mistakes By Ministers

[This information was not authored by the Editor, rather the Editor serves as a contact person.]

This information was provided by the office of Keith Hamilton of the Georgia Baptist Convention. There are mistakes that can be costly and time consuming - learn how to avoid them.

10. The minister is not paying the Social Security self-employment tax on their housing allowance.

9. Not checking your Social Security benefits statement for mistakes is a common mistake made by ministers. (

8. The church gives a minister a Form 1099 Misc. instead of W-2.

7. The minister is using a car allowance instead of travel reimbursement account.

6. The minister is not maximizing their housing allowance to the full extent of the law.

5. The church is paying the minister directly for health insurance instead of the insurance company. This results in the health insurance becoming taxable income.

4. The minister is paying for books, tapes, and sermons out of his own pocket instead of establishing a ministry reimbursement account.

3. A large number of ministers do not having a valid will. (

2. The minister's credit card spending is out of control.

1. The minister is using another retirement plan other than a church denomination pension plan. In a church denomination pension plan, a minister may be able to establish a housing allowance in retirement. Also, the minister does not pay the social security tax on contribution made to the retirement plan.

This document is intended to provide churches, pastors, and staff with current and accurate information about the subjects covered. However, such information is not intended to be sufficient for dealing with a particular legal problem, and the authors and distributors do not warrant or represent its suitability for such purpose. The reader should not rely upon this document as a substitute for independent legal consultation.