GROSS COMPENSATION PACKAGE: (This is the total pay package. Salary, housing, expense reimbursement, fringe benefits, and pension plan must be separately budgeted in advance and then combined to form this amount. Include flat monthly allowances for expenses. You may include the rental value of the parsonage. Exclude wedding/funeral fees from this amount.)
BUSINESS EXPENSES:
(If un-reimbursed, do not include them here. Report unreimbursed expenses on
Form 2106 for federal income tax purposes.)
A. Car mileage miles @ per mile
(business only, no commuting, reimbursed @ annual IRS rate)
B. Books, periodicals, 2nd daily newspaper
C. Entertainment (of members/prospects)
D. Continuing education: ministry related seminars, classes, and conferences
E. Professional memberships
F. Legal & professional services
G. Office supplies
H. Other
Total business expenses:
FRINGE BENEFITS:
A. Life insurance (group, term, up to $50,000)
B. Medical insurance
C. Disability insurance
D. Family medical expenses (out-of-pocket) up to a pre-approved limit
Total nontaxable fringe benefits:
TAX SHELTERING/PENSION:
A. Employer contributions to tax sheltered annuity or qualified pension plan 403(b) plans
for 501(c) organizations
B. Additional voluntary salary deferral to 403(b) plans
OR enter a percentage (14% is recommended) %
Total pension payments:
HOUSING ALLOWANCE: Some or all of the following may apply. Only list expenses for the current year.
A. Down payment
B. Minor purchases
(light bulbs, cleaning supplies, etc.)
C. Major purchases
(furniture, appliances, etc.)
D. Utilities
(long distance phone excluded)
gas/fuel
electric
water
sewer
trash
local phone
cable/satellite TV
other
Total Utilities
E. Total mortgage payments (principle, & interest) or rent
F. Real estate taxes
G. Maintenance, repairs, & improvements
H. House/property insurance
I. Outdoor expenses (mower, fertilizer, yard bags, garden tools,
etc., but NOT lawn service)
J. Other
Total housing allowance:
NET TAXABLE SALARY: (Reporting clergy income
on a 1099-MISC increases the chances of an audit.)
Gifts
Unspent housing allowance (if known & pastor requests)
TOTAL INCOME REPORTABLE ON FORM W-2:
Net profit from Sch. C/C-EZ (usually wedding & funeral fees)
Un-reimbursed expenses
INCOME SUBJECT TO SOCIAL SECURITY TAX (SCH. SE):
Estimated total SE Tax:
Estimated employer's portion of SE Tax:
Some churches choose to pay part or all of a
minister's Social Security tax. That is fine, but it must be added
to taxable salary. Taxpayers subject to SE Tax get a deduction for
half of the SE Tax on their Federal tax forms.
