Churches and qualified church controlled organizations are eligible for tax exemption from the Federal Insurance Contributions Act (FICA) taxes. These taxes include separate taxes from the wages employers pay to employees. They include Social Security tax and Medicare tax.
To qualify, a church must be definable as a convention or association of churches, or an elementary or secondary school supported, controlled, and operated principally by a church or an association of churches.
The term church controlled organization qualifies any church controlled section 501(c)(3) tax exempt organization (like a non-profit), so long as it does not receive more than 25 percent of its support from government sources, or receipts from admission or sales of merchandise; and the organization can’t offer goods or services for sale at a rate to the public that costs more than what those good or services are actually worth.
All churches and qualifying church controlled organizations must obtain what is called an Employer Identification Number (EIN), or a Federal Tax ID number.
Federal regulations state that every tax-exempt organization, including churches, is required to have an EIN, whether or not the organization has employees.
The Internal Revenue Service (IRS) issues EINs to distinguish various types of business entities, as well as churches and church controlled organizations.
An EIN is a nine-digit number specific to an organization, and it will remain with the organization as long as the church or church controlled organization doesn’t lose its tax-exempt status.
Don’t wait to obtain this important Federal Tax ID number essential to achieving tax exempt status.
Our online forms are quick to read and easy to navigate, and we work hard to get your church’s Tax ID number to you quickly and professionally.
If you’re operating a church or church controlled organization, please apply for a Federal Tax ID number today.