Less time updating records. More time connecting with people.
Keeping track of your church family shouldn’t mean chasing spreadsheets, searching through separate systems or wondering whether someone followed up.
Finance guide
Pastor payroll & compensation for church boards
Structure pastor pay as a clear package — cash, housing, benefits, and reimbursements — then document dual-status and housing themes with your CPA. Educational overview only.
Package design
Pastor compensation components
Comparing cash salaries alone understates (or overstates) what a church actually provides. Break the package into components so board members, the pastor, and payroll all share one vocabulary.
Cash salary
The taxable cash wages paid on a regular schedule. Boards should state this clearly in the compensation resolution — separate from housing and benefits.
Housing allowance
A board-designated amount that may exclude qualifying housing costs from federal income tax for eligible ministers. Timing and documentation themes are critical.
Benefits & other
Health coverage, retirement contributions, life/disability, and ministry reimbursements under an accountable plan. Include employer cost in the total package view.
Tax themes
Dual status overview (high level)
Many ordained ministers are dual-status: treated as employees for income tax withholding on wages, yet self-employed for Social Security and Medicare (SECA). Housing allowance often interacts with those themes. This is not a determination of anyone's status — facts, ordination, and elections matter. Read church payroll taxes and involve a CPA before changing withholdings.
Governance
A healthy board process
- 1
Gather comparables & budget constraints
Use peer churches, cost of living, and your operating budget before drafting numbers.
- 2
Model the full package
Cash + housing + benefits + other. Share one sheet so elders discuss the same totals.
- 3
Document designations in minutes
Approve housing allowance before the year (or effective date) and keep signed minutes.
- 4
Hand off to payroll & CPA
Ensure stubs, W-2 reporting, and SECA themes match what the board approved.