Churches looking for new ways to compensate their clergy or attract new clergy must distinguish themselves from other churches. Creative benefit packages often do the trick, particularly if they address specific needs.
With more and more seminary graduates entering the workforce and more and more of them graduating with substantial debt, some churches have created a new benefit – student loan repayment benefit.
This benefit can help clergy employees with their current student loan debt which is considered taxable income. Churches do have some leeway on how to offer the benefit. The amount of the benefit can be offered monthly or as a lump sum, it can be capped, and it can be tied to an employee match. A waiting period is also fine.
If you’re looking for an enticing benefit to attract new clergy or a creative way to structure their compensation package, a student loan repayment benefit may be something to consider. We realize this benefit isn’t one that will work for every church, but we want to keep you up to date on the most current benefit trends.
Clergy Financial Resources serves as a resource for clients to help analyze the complexity of clergy tax law, church payroll & HR issues. Our professionals are committed to helping clients stay informed about tax news, developments and trends in various specialty areas.
This article is intended to provide readers with guidance in tax matters. The article does not constitute, and should not be treated as professional advice regarding the use of any particular tax technique. Every effort has been made to assure the accuracy of the information. Clergy Financial Resources and the author do not assume responsibility for any individual’s reliance upon the information provided in the article. Readers should independently verify all information before applying it to a particular fact situation, and should independently determine the impact of any particular tax planning technique. If you are seeking legal advice, you are encouraged to consult an attorney.
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