Giving gifts to our employees can be one of the best ways to express our gratitude for a job well done. On the other hand, the laws surrounding what we give (and to whom) can make it a tricky business. Yes, it’s unfortunate that our...
Question: Our minister would like to increase his housing allowance due to higher expenses than expected. Can our board amend it? Answer: Yes, your church can amend the housing allowance, but you must pay attention to the following rules: Proper authorization: The amended housing allowance...
Question: Can we cut a performance improvement plan short if the employee's performance has gotten worse? Answer: In general, yes. When an employee is on a performance improvement plan (PIP) and their performance has not improved but gotten worse, it is perfectly reasonable to...
Clergy are subject to self-employment tax because their earnings from ministerial services are considered self-employment income under the Self-Employment Contributions Act (SECA). This classification is based on several key provisions and interpretations of the Internal Revenue Code and related regulations. Definition of Net Earnings from...
It isn’t a question of if your staff is experiencing burnout, but how many of them are already burnt out. Most people don’t even know it. They think they don’t have time to look closely and deal with it; they ignore warning signs, writing them off...
With the Department of Labor's upcoming rule changes, church employers must prepare for the new salary threshold for exempt employees, rising to $58,656 on January 1, 2025. However, clergy staff—those considered ministers for tax purposes—are exempt from overtime requirements, regardless of how much or...
All meal expenses for church pastors and staff should not automatically be reimbursed. The reimbursement of meal expenses must comply with specific IRS guidelines to ensure they are deductible and not considered taxable income. Here are the key considerations: Business Connection: The meal expenses must...
Question: Can all church employees qualify for housing allowance? Answer: No. Section 107 of the Internal Revenue Code allows only a “minister of the gospel” to have a housing allowance. Thus, only taxpayers who are serving as clergy under IRS rules for tax purposes are eligible for...
Church staff often wear many hats and juggle countless responsibilities. Create job descriptions to help keep church employees focused on the most important tasks that support ministry goals and objectives. Working for a church is very different than working for a business in that much of what gets...
We’ve worked with some incredible churches, carrying the Gospel with excellence and ministering to their church staff with authentic love. On the other hand, we’ve also seen organizations that miss the mark more than just occasionally when it comes to taking care of people. Whether...