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Pastor, Church & LawMember access only

by Richard R. Hammar, J.D., LL.M., CPA

Introduction: Compensation and Benefits

§ 8.06

Compensation and Benefits


Churches need to be aware of several legal and tax issues related to the wages and benefits they provide for their employees. Here are the critical points you need to know:

Workers compensation —Workers compensation laws were enacted in all 50 states to give injured workers a quicker, less costly, and more certain recovery than was possible by suing an employer directly for negligence. In exchange for such benefits, employees give up the right to sue an employer directly if they've gotten sick or been injured on the job.
Workers compensation laws only cover injuries and illnesses suffered by employees on the job. The term employee generally is defined very broadly to effectuate the objectives of the workers compensation law. As a result, persons whom a church may deem self employed for income tax purposes may be deemed employees for purposes of the ...

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