Then simply report the amount of the housing allowance as housing compensation (please specify either annually or monthly). If the pastor receives a cash housing allowance (pays own housing expenses) … Please see the appropriate section below, based on the pastor’s arrangement.
#Church pastor salary how to
How to report the pastor’s housing for pension purposes depends on whether the pastor has a parsonage or receives a housing allowance.
#Church pastor salary free
Note: If the pastor receives no salary (as defined above), but does receive housing compensation (as defined below), then the pastor is still eligible for the Free Methodist Church – USA Defined Benefit Pension Plan. Medical expenses for those in a group medical plan – If the pastor designates a portion of the salary to be withheld as a tax-free reimbursement for medical, dental, or other expenses (such as a Section 125 cafeteria plan), this portion of the salary should be reported as part of the pastor’s income for pension purposes (because the reimbursements are being made from the pastor’s salary and not the church budget – they function as a tax shelter for the pastor).Direct reimbursements and/or benefit payments by the church for ….(If due to the Affordable Care Act, salary includes insurance premium reimbursement, this is included for pension compensation.) Any insurance premiums paid by the church on behalf of the pastor.Please note that the church’s payments on behalf of the pastor to the Free Methodist pension plan cannot be counted as part of the pastor’s salary for pension purposes. This includes contributions to IRAs, 403(b) accounts, etc. TDA Payments: If the church pays into a tax-deferred annuity plan on behalf of the pastor, this amount should be reported as part of the pastor’s base salary for pension purposes. are listed), then it cannot be reported as part of the pastor’s income for pension purposes. If the Social Security compensation is listed as a reimbursement (in the same way that mileage, expenses, etc. If the pastor is responsible for his or her own Social Security payments out of the base salary (the budget will not show a “Social Security” line item), then report the entire base salary. The answer is found in the church’s official budget. Social Security (Prior to January 1, 2006): If the pastor receives compensation for Social Security from the church, it may be reportable as salary for pension purposes. Social Security payments: Should be included as part of compensation for pension reporting purposes – regardless of how it is listed in the church budget.
#Church pastor salary plus
Report the pastor’s base salary (please specify weekly, monthly or yearly), plus or minus the following: Effective Janudirect hires by the church may be enrolled in the pension plan with church board approval. To determine eligibility for conference employees or non-pastoral employees of the church, please call the Human Resources office. The two are governed by entirely separate sets or rules.Įligibility: To be eligible for the pension plan, a pastor must be under appointment by the conference (not a direct hire by the church, which is sometimes the case with youth and music ministers, for example), and must be compensated by the church with a salary and/or some type of housing compensation. Note: Please remember that there is no relationship between pension and taxes when reporting compensation to Human Resources. Free Methodist Church – USA Pastor’s Compensation Calculatorįor Use in Determining Compensation Information to Report for Pension Purposes
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