12 Mar Church Administrators: Managing Clergy Reimbursements
A church office administrator should handle reimbursement for clergy through an accountable reimbursement plan. Here are the key steps to follow:
- Establish a Written Policy: Create a written expense reimbursement policy that outlines which expenses are eligible for reimbursement. This policy should include ministry-related expenses such as travel, office supplies, religious materials, meals, and professional dues.
- Expense Documentation: Clergy must provide receipts or other documentation to substantiate their expenses. This documentation should include the amount, date, place, and business purpose of each expense.
- Approval Process: Ensure that all expenses are approved by the appropriate supervisor before reimbursement. This helps maintain accountability and ensures that only eligible expenses are reimbursed.
- strong>Reimbursement Submission: Clergy should submit their expenses on a monthly expense report. This report should include all necessary documentation and be reviewed by the church office administrator.
- Tax Compliance: Ensure that the reimbursement plan complies with IRS guidelines. Under an accountable plan, reimbursed expenses are not considered taxable income for the clergy.
By following these steps, the church office administrator can effectively manage reimbursements for clergy and ensure compliance with tax regulations.
Original content by clergyfinancial.com. This information is provided with the understanding that Payroll Partners is not rendering legal, human resources, or other professional advice or service. Professional advice on specific issues should be sought from a lawyer, HR consultant or other professional.