IRS Form SS-16 – IRS Forms, Instructions, Pubs 2026

IRS Form SS-16 – IRS Forms, Instructions, Pubs 2026 – In the realm of tax obligations for religious organizations, IRS Form SS-16 plays a crucial role. This form, officially known as the Certificate of Election of Coverage Under the Federal Insurance Contributions Act (FICA), allows qualifying religious orders to opt into Social Security and Medicare coverage for their members. If you’re part of a religious order considering this election, understanding Form SS-16 is essential for compliance and securing benefits like retirement and disability protections. This SEO-optimized guide covers everything from eligibility to filing, drawing from official IRS resources to ensure accuracy as of 2026.

What Is IRS Form SS-16?

IRS Form SS-16 is a specialized tax form used by religious orders or their autonomous subdivisions to elect coverage under FICA for Social Security and Medicare taxes. Specifically, it applies to services performed by members who have taken a vow of poverty in exercising their required duties. By filing this form, the order certifies an irrevocable election under Internal Revenue Code (IRC) Section 3121(r), shifting the tax treatment of these services from potential exemption to FICA coverage.

Without this election, earnings from ministerial services for vow-of-poverty members are generally exempt from self-employment tax (SECA) and not subject to FICA. However, electing coverage ensures these members can earn credits toward Social Security benefits, including retirement, disability, and survivors’ benefits, as well as Medicare eligibility.

Key highlights:

  • Purpose: To opt into employer-employee FICA tax structure for covered services.
  • Irrevocability: Once filed, the election cannot be reversed and applies to all current and future qualifying members.
  • Tax Implications: The religious order pays both the employer (6.2% Social Security + 1.45% Medicare) and employee shares (same rates), totaling 15.3% on wages up to the annual wage base (e.g., $168,600 for Social Security in 2026).

This form is particularly relevant for religious workers in orders like Catholic nunneries or monastic communities where vows of poverty are standard.

Who Is Eligible to File Form SS-16?

Eligibility for IRS Form SS-16 is narrowly defined to protect the unique status of religious organizations:

  • Qualifying Entities: Only religious orders or autonomous subdivisions (e.g., a specific monastery or chapter) where members are required to take a vow of poverty.
  • Members Covered: Individuals who are active members subject to the vow, performing required services on behalf of the order or its agencies. This excludes retired members due to age or disability, lay employees (unless they also take vows), or services performed outside the order’s direction.
  • Exclusions: Ministers, Christian Science practitioners, or members of religious sects seeking personal exemptions use different forms like Form 4361 or Form 4029.

If your organization is unsure about qualifying as a “religious order,” you can request an IRS ruling under Revenue Procedure 2024-1. Note that this election does not affect federal income tax on earnings, which remain exempt for vow-of-poverty members acting as agents of the order.

Benefits of Electing FICA Coverage with Form SS-16

Opting into coverage via Form SS-16 provides significant long-term advantages for religious order members:

  • Social Security Credits: Members earn quarters of coverage toward benefits, which is vital for those without other employment history.
  • Medicare Access: Ensures eligibility for hospital insurance (Part A) and potential supplemental coverage.
  • Retroactive Protection: Coverage can apply backward, helping members close gaps in their benefit records.
  • Employer Responsibility: The order handles all tax withholding and payments, relieving individual members of SECA burdens.

However, this comes with increased tax costs for the order, as it must report wages—including the fair market value (FMV) of in-kind benefits like housing, meals, and clothing (excluding items under $100 per month)—on forms like Form 941.

How to Complete IRS Form SS-16 Step by Step?

Form SS-16 is a straightforward one-page document with four identical copies (A, B, C, D) for distribution. Here’s a step-by-step guide based on official IRS guidelines:

  1. Enter Religious Order Information:
    • Full name of the religious order or autonomous subdivision.
    • Employer Identification Number (EIN)—if you don’t have one, apply using Form SS-4.
    • Complete address, including street, city, state, ZIP code. For foreign addresses, include province, country, and postal code without abbreviations.
  2. Specify Effective Date:
    • Enter the date (mm/dd/yyyy) as the first day of a calendar quarter. Options include:
      • The quarter in which you file.
      • The following quarter.
      • Any of the 20 quarters preceding the filing quarter (for retroactive coverage).
    • This date is critical; errors here can lead to rejection.
  3. Complete the Certification Statement:
    • The form includes a pre-written perjury statement affirming the irrevocable election, vow-of-poverty requirement, and wage definitions under IRC Section 3121(i)(4).
  4. Sign and Date:
    • Authorized official’s signature, printed name, title, date, and telephone number.

Copies B and D include reminders to file related employment tax returns like Form 941 for ongoing reporting or Form 941-X for retroactive adjustments.

Here’s a visual example of what a completed Form SS-16 might look like:

Common mistakes to avoid:

  • Omitting or entering an invalid effective date.
  • Failing to include the EIN or accurate address.
  • Not understanding that wages include FMV of benefits over $100 monthly.

Where and How to File Form SS-16?

Filing is simple but requires precision:

  • Prepare all four copies.
  • Mail Copies A, B, and C to: Department of the Treasury, Internal Revenue Service Center, Ogden, UT 84201-0005.
  • Retain Copy D for your records.
  • No filing fee; process via mail (online filing not available for this form).

There are no strict deadlines, but the effective date ties to calendar quarters relative to when you file. For retroactive elections, amend prior returns promptly to avoid penalties.

After filing, the IRS will return Copy C as confirmation. Start reporting covered wages on Form 941 (quarterly) or Form 944 (annual, if eligible), and use Form 941-X for any back taxes owed on retroactive periods.

Retroactive Election: What You Need to Know

One of Form SS-16’s unique features is retroactivity, allowing coverage for up to 20 calendar quarters before the filing quarter. This applies only to services by members who were alive on the first day of the filing quarter. Benefits include building credits for past service, but the order must calculate and pay back taxes, including interest if late.

Example: If filed in Q1 2026 (January-March), retroactivity could extend to Q1 2021.

Important Considerations and Implications

  • Tax Reporting Shift: Post-election, services are treated as employment, with the order as employer.
  • No Impact on Income Tax: Earnings remain non-taxable for income purposes.
  • Coordination with Other Forms: Use Form 8274 if electing to exclude non-vow employees from FICA (opposite of SS-16).
  • Seek Professional Advice: Consult a tax advisor or the IRS for complex scenarios, especially retroactivity.

For the latest updates, always refer to the IRS website, as tax rules can evolve.

Conclusion

IRS Form SS-16 offers religious orders a pathway to secure Social Security and Medicare benefits for their vow-of-poverty members through FICA election. By following this guide, you can navigate eligibility, completion, and filing with confidence. If your order qualifies, this irrevocable step can provide invaluable long-term protections. Download the current version from the IRS site and act today to align with your organization’s needs.