Advantages of a Premium Only Plan
If your employees pay a portion of their group insurance premiums, you may be able to reduce your payroll taxes, and give workers a little extra in their checks each and every payroll, by setting up premium only plan (POP) through payroll deductions for their share of insurance premiums. The Section 125 POP program is a…
Is it Vacation or Paid Time Off?
Traditionally, churches had offered separate paid time off benefits to employees, such as paid vacation, sick leave and personal days. However, in the past decade, many churches have moved to a more flexible Paid Time Off or “PTO” benefit that incorporates all policies into one all-inclusive PTO plan. The debate as to whether churches benefit…
When do I use Form W-9?
When a church hires a worker, one of the initial decisions that must be made is whether to treat the worker as clergy, non-clergy employee or contractor. This decision may seem insignificant, but it has huge implications when it comes to payroll. When you hire a new employee, you need to fill out paperwork to…
Implementation Strategies for Overtime Employees
Implementation strategies There is no one-size-fits-all strategy to comply with these new overtime regulations. Every church will have different needs, but among the options are: Maintaining current salary levels and paying overtime Bumping salaries over the threshold to prevent paying overtime Changing staffing levels to reduce overtime needs Preparing for change If you get started well…
Church Employee Benefits
With the exception of wages and salaries, employee benefits are the primary tools by which churches attract and retain qualified personnel. Most churches voluntarily provide a variety of benefit packages or benefit dollars. Reasons for providing such benefits range from a desire to be competitive in the relevant labor market to a genuine concern for their…
Writing Effective Job Descriptions
Job descriptions are essential in the church hiring process. After all, they are the first thing potential applicants see about your church. Job descriptions can say a lot about your church, and they ensure that applicants and future employees fully understand what the job is about, what their role involves, and what they will be…
Timekeeping Requirements for Churches
The federal Fair Labor Standards Act and similar state wage-hour laws require churches to maintain accurate timekeeping records and to pay nonexempt employees for all hours worked in a workweek and to pay overtime for all hours worked in excess of 40 hours per week. Some states also impose daily overtime requirements. To pay employees…
Calculating Overtime When a Church Employee Is Paid a Salary
It is fairly simple to calculate how much overtime a nonexempt employee is owed when the employee is paid an hourly wage. But calculating overtime becomes a bit more difficult when the employee is paid on a salary basis. The methods for calculating overtime vary depending on whether the employee’s salary is intended to cover…
Defining the Workweek or Work Period For The Church
The Fair Labor Standards Act (FLSA)’s overtime laws require churches to pay employees overtime when they work beyond a certain threshold, usually 40 hours in a workweek. For most churches, the workweek coincides with the calendar week, running from 12 a.m. Monday to 12 p.m. on Sunday. But churches are allowed to use any fixed…
How Your Church Can Comply With The New Overtime Rules
The FLSA requires covered employers to pay “non-exempt” employees at least the minimum wage for each hour worked as well as overtime pay for all hours worked in excess of 40 in a workweek. Federal_FLSA_Exemption Guide If your exempt employees earn less than the new salary requirement, they will no longer meet exemption criteria and…
