Top Employee Benefits Offered by the Church

What benefits does your church offer its employees? This question tends to pop up a lot in job interviews—often right after the interviewer asks “Do you have any questions for me?”. And employee benefits are a fair thing to inquire about; most of us would like to know the perks that a job will give…

Read More
Compensation Guidelines for Church Staff

Are you a church leader preparing compensation packages for multiple positions? Or an individual seeking guidance about your own compensation package? The 2018 Compensation Handbook for Church Staff offers everything you need—including expert articles and resources relative to ministry compensation. Churches often struggle to determine pay levels for their pastors and staff. And those in…

Read More
Guide to Minister’s Compensation

You may find it helpful to begin by considering the goals of a compensation package. A church should provide its staff with adequate income so that they can fulfill their roles without undue concern about current and future financial needs. Freedom from financial anxiety lets the minister focus on his or her service. It also helps your church…

Read More
It’s Time To Stop Making Payroll Mistakes

Payroll is complicated. There are a lot of tasks, laws, forms, and calculations. With so many things to remember, it’s easy to make a mistake. You should not take payroll errors lightly. Mistakes can result in penalties, interest, and even jail time.  The best way to avoid payroll mistakes is by knowing what to look…

Read More
What Should The Gift Acknowledgement Letter Contain?

Prompt and thoughtful gift acknowledgments are central to reporting compliance. IRS regulations govern what documentation donors need in order to claim a deduction for their charitable contribution.  It’s helpful to have the sample template ready to send out that can be customized as donations arrive, and it’s imperative to have a good system for recording…

Read More
Flat-dollar Reimbursements Taxable

Question: Employees often use their personal cell phones for church business. The church requires that they submit monthly expense reports and they’re reimbursed through an accountable plan. The church board wants to ditch the paperwork and just pay flat-dollar allowances to employees every month. Would that be taxable? Answer:  Yes, the allowances would be taxable because…

Read More
Clergy Housing Lands in Seventh Circuit

Churches and the IRS joined forces Wednesday before a sympathetic Seventh Circuit panel to argue that a 65-year-old income tax housing exemption for clergy members does not violate the Constitution’s Equal Protection Clause. “The court has to take history into account,” said attorney Luke Goodrich of the nonprofit law firm Becket, a public-interest firm representing…

Read More
Can employees take home old computers for free?

Question: Our church just completed a major upgrade of everyone’s computers. The computers that were replaced were ancient by today’s standards. Rather than throw them out, one staff member suggested that employees take their old computers home. He also said that since the computers are old, we don’t have to worry about taxes. The church board is uncomfortable with this nontaxable suggestion….

Read More
So You’ve Lost Your Social Security Card

Losing important documents is frustrating, especially something as important as your Social Security card. You’ll want to consider whether you really need to get a replacement card. Knowing your number is what’s important, after all. You’ll rarely need the card itself — perhaps only when you get a new job and have to show it…

Read More
What should the church include as income on a pastor’s W-2?

The first thing to understand is that the income tax code takes the position that any money paid to or for an employee is income unless specifically excluded by the tax code. In addition to the pastor’s base salary, there are some items the church may provide as fringe benefits to the pastor or other employees that…

Read More