The Catholic University of America

Faculty Handbook

Section C: Supplementary Provisions for Clergy and Religious

III-C-3 Compensation

The compensation of diocesan priests is affected by regulations of the Internal Revenue Service and by amendments to the Social Security Act. In general, a diocesan priest who has been assigned to perform services at the University is treated as performing ministerial services irrespective of the nature of the services performed, and he is classified, for tax purposes, as a self-employed individual. As self-employed, he is entitled to exclude from his gross income received from the University and from any other source to which he renders specifically religious service without benefit of room and board, the amount described as a "parsonage allowance" under Section 107 of the Internal Revenue Code 1954. Residence on campus for the convenience of the University allows the exclusion from gross income of compensation in kind, i.e., the value of accommodations and meals provided by the University. The amount that is determined to be a parsonage allowance or compensation in kind is shown in the annual notice of salary issued by the Provost to members of the Faculties or by the cognizant Vice President to administrative appointees. The University reports to the Internal Revenue Service only the amount specified as salary and not the value of the on campus residence allowance or the parsonage allowance.

 

 

 

Checked for formatting 9/16/13 - VAL