To clear up confusion. Certain public employees are exempt from social security taxes UNLESS their state has removed their exemption. Almost all states have removed public employee exemption. Catholic School teachers are not public employees and are subject to all taxes any other employee is subject to in their jurisdiction. The confusion may be that members of the ministry can be exempted from Social Security. Catholic schools, like most private schools, colleges and universities, are tax exempt institutions. As they have no shareholders, there is no one directly benefiting from the schools’ existance financially. No shareholders, no taxes.