Continuing education for ministry leaders
Weekly Lessons, created and written by Richard R. Hammar, J.D., LL.M., CPA, give you a basic legal overview of essential topics based on staff or volunteer positions within a church.

Previous Lessons

Week of May 12

Continuing Education

This Week's LessonWeek of May 19

Compensation Planning


This lesson focuses on the issue of Compensation Planning. You can review the Executive Summary to obtain the key points or read the Weekly Lesson for a more thorough presentation of this topic. Start by completing the following interactive quiz to test your knowledge.

A church allows its senior pastor to use a church-owned car for both personal and business use. The pastor and church treasurer both assume that this arrangement does not result in any additional taxable income to the pastor. Are they right?

Weekly Quiz

Instructions Click on the correct answer for each of the following questions.

Executive Summary

Compensation planning is an important task for many reasons. Church leaders need to have a basic understanding of what constitutes compensation; which fringe benefits are taxable and which are nontaxable; how to properly report compensation; how to assess the adequacy of compensation; and, the legal significance of paying excessive compensation. This week's lesson addresses issues that church leaders should consider in structuring a compensation package for their pastor.

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