IRS Form 4361 walkthrough (Self-Employment Tax Exemption for Ministers and Religious Practitioners)

File Form 4361 to apply for an exemption from self-employment tax if you have ministerial earnings (defined later) and are:
• An ordained, commissioned, or licensed minister of a church;
• A member of a religious order who has not taken a vow of poverty; or
• A Christian Science practitioner

If you are a commissioned or licensed minister of a religious denomination or church that ordains its ministers, you may be treated in
the same manner as an ordained minister if you perform substantially all the religious functions within the scope of the tenets and practices of
your religious denomination or church.

This application must be based on your religious or conscientious opposition to the acceptance (for services performed as a minister, member of a religious order not under a vow of poverty, or Christian Science practitioner) of any public insurance that makes payments for
death, disability, old age, or retirement; or that makes payments for the cost of, or provides services for, medical care, including any
insurance benefits established by the Social Security Act.

If you are a duly ordained, commissioned, or licensed minister of a church or a member of a religious order not under a vow of poverty, prior to filing this form you must inform the ordaining, commissioning, or licensing body of your church or order that, on religious or conscientious grounds, you are opposed to the acceptance of public insurance benefits based on ministerial service.

Ministerial service, in general, is the service you perform in the exercise of your ministry, in the exercise of the duties required by your religious order, or in the exercise of your profession as a Christian Science practitioner. Ministerial earnings are the self-employment earnings that result from such service. See Pub. 517 for details.

Do not file Form 4361 if:
• You ever filed Form 2031, Revocation of Exemption From Self-Employment Tax for Use by Ministers, Members of Religious Orders, and
Christian Science Practitioners; or
• You belong to a religious order and took a vow of poverty. You are automatically exempt from self-employment tax on earnings for services you perform for your church or its agencies.

No tax exemption applies to earnings for services you perform for any other organization.

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If the priests receive a salary and taxes are withheld by the accountant, can they complete Form 4361 to seek exemption from taxes? Are their salaries classified as self-employment earnings?