Join now to access this member-only content
Become a Member
Already a member? Log in for full access.
All too often churches approach compensation packages in a haphazard way. They make quick decisions without much forethought and with little or no documentation. These churches are asking for trouble.
Set Reasonable Compensation
When it comes to compensation, churches must guard against excess benefit transactions. Such a transaction takes place when an employee is: (1) paid too much for the services rendered, (2) paid without the proper authority (e.g., the pastor sets his or her own compensation), or (3) receives benefits that are not approved and properly reported for tax purposes. Along with the possibility of severe penalties, excess compensation can jeopardize a church's tax exempt status.
It's essential that churches determine the maximum compensation that can be paid to an employee or minister for services rendered to the church. To prove that the maximum compensation proposed ...
Related ResourcesVisit Store
The 2019 State of Church Compensation Report
Data and statistics about the state of church compensation in the U.S. for 2019.
ChurchSalary
There’s a better way to calculate salaries. Create compensation reports with ChurchSalary’s interactive calculator tool.
Smart Money for Church Salaries
This resource takes you on a journey through real-life case studies to uncover compensation issues and navigate their solutions.
Setting Wages and Benefits for Church Staff
This training download addresses key aspects of compensation planning for church employees.
