In most churches compensation planning is an annual task that is performed by the church board or a personnel committee. Often, this task is performed with little if any guidance. Here is a checklist of questions that a church board or personnel committee should consider when establishing a compensation package for a minister or lay worker for 1998.
Do we understand the meaning of "compensation?"
Be sure that you have a clear understanding of what constitutes taxable compensation so that you can report the correct amount to the IRS—on the W-2 or 1099 form issued to the minister or lay worker, and on the quarterly 941 forms filed with the IRS.
Have we addressed music or publications produced "on company time"?
Ministers and lay workers who are authors or composers often are shocked to learn that their employer may be the copyright owner of works that they create. Section 201 of the Copyright ...