The IRS

Policies

The US National Conference of the Church of the United Brethren in Christ recommends a minimum fulltime salary to be adopted by local churches. In addition, they provide a formula for computing a salary package based upon education, experience, the size of the congregation, and the number of staff supervised.

Here are the Year 2008 guidelines furnished by the Executive Leadership Team for establishing the pastor's salary and benefits. These figures are the minimum compensation levels for fulltime senior pastors.

Notes on the Salary Compensation Formula

1. Fulltime pastors are those whose compensation packages meet the above criteria in full. If a church cannot meet these guidelines, a pastor may pursue supplemental employment to achieve this compensation level.

2. The Suggested Standard Base Salary assumes a person holding a ministerial license and a bachelor's degree, with no years of ministerial service, providing fulltime service to a local congregation of the Church of the United Brethren in Christ, USA.

3. The suggested base salary for persons not having a national conference ministerial license and a bachelor's degree shall be 85% of the suggested Standard Base Salary. They are entitled to all other standard adjustments and additional compensation considerations.

4. The suggested base salary for associate/assistant pastors (must have a ministerial license and a bachelor's degree) shall be 90% of the suggested Standard Base Salary. They are entitled to all other standard adjustments and additional compensation considerations. It is recommended that the total compensation for any associate/assistant pastoral staff person not exceed 90% of the senior pastor's total compensation.

5. Each year the Executive Leadership Team will review the suggested Standard Base Salary and the standard adjustment factors.

6. Cluster leaders, at the time of assigning a pastor to a local congregation, will establish the Adjusted Standard Base Salary for the pastor at that church. Cluster Leaders will assist local pastors and boards of administration in determining the Adjusted Standard Base Salary and any additional increases.

7. The Personnel Relations Commission of each local church is responsible for establishing criteria for granting additional compensation beyond the Adjusted Standard Base Salary.

8. In addition to the cash salary paid to each pastor, he/she shall be provided the following:

Employee Benefits

a. Parsonage. A parsonage or adequate cash rental allowance so the pastor can rent a house in the immediate area of the local church.

b. Utilities. All utilities--heat, electricity, water, sewage, garbage collection, gas, or other fuel, water treatment (if necessary) and basic telephone service (excluding personal long distance calls).

c. SECA. At least one-half of the SECA tax on the salary/housing package.

d. Hospitalization. Hospitalization insurance as provided through the local church (because of rising costs, concessions may have to be considered).

e. Disability. Disability insurance as provided through the National Conference

f. Pension. Contribution to the pastor's Pension Program provided through the National Conference.

g. Vacation. Vacation based on years of service in the United Brethren Church as follows:

• 1 to 5 years: two weeks
• 6 to 10 years: three weeks
• 11-20 years: four weeks
• 21 plus years: five weeks

Employee Business Expenses.

a. Expenses. Professional ministry expense reimbursement--home entertainment, professional dues, professional education, periodicals, subscriptions, ministerial luncheons, civic activities, etc. (Each local church must adopt its own qualified reimbursement plan in order to comply with IRS codes. The pastor and local Board of Administration should work together in structuring the compensation/ reimbursement package to maximize the tax benefits to both the pastor and the local church.)

b. Conferences/seminars etc. Convention/conference expense reimbursement--to cover the costs of the National Conference for attendance at its sessions. Also, provides for participation in seminars and workshops designed to provide personal ministry to the pastor.

j. Mileage. Mileage reimbursement at the then current IRS rate for the actual miles driven in church related activities. Also tolls and parking fees shall be paid upon proper documentation. It is recommended that mileage reimbursement be paid from a log turned into the church treasurer.