Compensation/Benefits
The following is a series of memos to answer common questions with regard to benefits and compensation for pastoral staff. Additional information can be obtained on these and other subjects by calling Servant Solutions at (800) 844-8983 or (765) 642-3880. Each of these Memos can be printed. You will need Adobe Reader to view or print.
Housing for Your Pastor: Parsonage or
Housing Allowance?
“Should we continue to provide a parsonage and utilities or should we change to a cash housing allowance and let our pastor buy his own home?”
Church Employees or Independent Contractors?
“The only employee we have besides our pastor is a part-time custodian (or secretary). Do you know of any way we could pay them by contract and save the trouble of withholding income taxes and Social Security/Medicare (FICA) taxes?
Strategies for Structuring Ministerial Compensation
A review of the patterns of ministerial compensation over several decades would indicate that significant changes have taken place. Gone are the days when the majority of ministers received a large portion of their compensation in the form of food and clothing supplied by members of the congregation.
workers compensation laws and the local church
Workers’ Compensation laws exist in all states. They are designed so benefits (both medical and disability) for the work-related accident, injury, or illness can be paid promptly without expensive legal fees to determine fault. Medical benefits have no dollar or time limits, and cash benefits are paid for lost wages due to impairment or disability.
Can Ministers Opt Out of Social Security?
“My advisor has recommended that, as a minister, I can elect out of Social Security coverage and put my money into an annuity program, thereby securing a better retirement. Is this true? Is it legal? What forms might be involved?”
Auto and Other Business Expense Reimbursements
Tax rules make it very important for churches to provide ministers with full reimbursement of business transportation, travel, and other business and professional expenses. Any unreimbursed expenses deducted from federal income taxes may be lost since they are deductible only to the extent they exceed 2 percent of Adjusted Gross Income (AGI)…
HEALTH REIMBURSEMENT ARRANGEMENTS – The New QSEHRA
The ever-changing landscape of options for church staff healthcare insurance and premium reimbursement is changing again…this time for the better. Finally! Small employers (for purposes of this article, churches under 50 employees) have never been required to provide health insurance coverage to their employees.
HEALTH REIMBURSEMENT ARRANGEMENTS – The New QSEHRA
The ever-changing landscape of options for church staff healthcare insurance and premium reimbursement is changing again…this time for the better. Finally! Small employers (for purposes of this article, churches under 50 employees) have never been required to provide health insurance coverage to their employees.