A minister exempt from social security has an employer who withheld social security and Medicare taxes from of his paychecks. What does he do to get his money back?
Answers (take your pick):
1. If the employer is not a church or qualifying tax exempt organization, he does not get his money back. An exemption from social security and Medicare tax applies only to his ministerial income.
2. If the employer is a church, then the church must file Form 941c to get the money back and then forward the minister's portion to him. It will also be necessary for the church to file corrected Forms W-2c and W-3c. A previous post today (and probably others earlier) explain that the churches may not withhold FICA taxes from a minister even if he requests it. The Internal Revenue Code clearly classifies a minister as self-employed for purposes of social security and Medicare tax matters.