Tax exemptions for pastors, ministers, and clergy members are a great way for the government to acknowledge the important roles these individuals have in their communities. Many religious leaders receive compensation through salaries, housing allowances, and other benefits, but the IRS offers specific tax exemptions that lighten their financial load. This helps them focus more on their spiritual missions rather than worrying about hefty tax bills.

To make the most of these tax exemptions, it’s important to understand the IRS guidelines on what qualifies for exemption. Once you’ve confirmed that your employee is indeed exempt from these taxes, you can easily follow a few simple steps to ensure that these taxes won’t be deducted from their paycheck. This way, you can help your clergy member keep more of their hard-earned money for their important work!

1. Under your People tab, click the employee who is exempt.
2. From the Job & Pay tab within that employee's profile, scroll down to the Federal Taxes section and click Add Special Tax Exemption
   
   
   
3. From here, you'll choose the exemptions for this employee, then click Save:

If your employee also receives a Housing Allowance, check out this article to see how to complete that setup.