The memo Deacon Hoy refers to in the e-mail

For non US resident diocesan priests that are temporarily working in the Diocese of Gallup, payroll should be handled as follows:

They will need to take their visa and any other documentation to a local Social Security office. They will be issued an employee ID number (similar to a social security number).

They need to fill out the normal government forms (W-4, I-9, etc.).

If they are receiving a car (loaned or leased) from the Diocese or CPF, then the parish should send the priest’s car allowance directly to the sponsoring entity (diocese or CPF). But it is still part of his taxable income.

The priest should receive all normal benefits that a diocesan priest would receive (groceries, gas, auto maintenance, etc).

The priest’s wages (salary, car allowance, stipends, etc) are considered taxable income for Federal Income Tax and State Income Tax.

The priest will receive a W-2 at the end of the year.

If the priest chooses, he may opt out of the Social Security and Medicare system. If this is the case, he would not need to file any additional paperwork, but at the end of the year, he would file an IRS form 1040NR instead of a form 1040. He is not liable for self-employment tax either.

If he decides to pay into the Social Security and Medicare system, then his housing is also taxable for this and he should be treated exactly as any diocesan priest.