Specifically, it is the pastor's expense and his/her responsibility to pay--not the church's.
Paying Estimated Taxes is Income by: Vickey
It is definitely considered income and should be reported on their W-2.
A Social Security Tax Allowance is a great benefit for ministers, but make sure it is approved and recorded in your church board minutes.
And I am not sure how you are handling the estimated tax payment, but I consulted a tax professional and he stated that although it is not against the law for churches to send in a church check with a minister's 1040ES...it could raise a red flag with the IRS.
He stated it would be better to issue the minister a check for his SST allowance and let him give you back a personal check...if you are the one filing his 1040ES.
pastor tax by: Anonymous
I believe you include it as income on W-2 box 1. You might want to use the sitesearch located on the right