Elective Fica Exemption

[spanel]

I have a client that worked for a 501c3 and only has state withheld. No IRS/SS/MED.

He of course is clueless as to why and so are the other employees/board members.

One mentioned the above exemption elected, if this is the case would the following be true?

It sounds like they are treating employees (janitors/secretaries) as clergy members and as such, they are responsible for not only their SS/Med payments, but also the employers?

I would need to file a Sch SE, mark clergy and have them pay the full SE tax.

Opinions??

Thanks

Chris

[Rapid Robert]

All I know about it is what I read in Pub 15 and 15-A. The latter specifically discusses religious organizations and clergy. The only election I see mentioned is

However, an employee who is a member of a qualified religious sect can apply for an exemption from the self-employment tax by filing Form 4029. See Members of recognized religious sects op-posed to insurance in section 4.

[Anarchrist]

What type of 501c3? Is the taxpayer a student or alien?

If FICA should have been withheld and it's an error of the employer, there's no way you should put all of it on Sch SE. You probably shouldn't use SE no matter what. Maybe form 4852 or 8919, though neither are really for this situation but still better than SE.

[terryats]

From IRS, link.
https://www.irs.gov/charities-non-pr...20FICA%20taxes.

If a church or qualified church-controlled organization has made an election, payment for services performed for that church or organization, other than in an unrelated trade or business, will not be subject to FICA taxes. However, the employee, unless otherwise exempt, will be subject to self-employment tax on the income. The tax applies to income of $108.28 or more for the tax year from that church or organization, and no deductions for trade or business expenses are allowed against this "self-employment" income.