1. Ad-Ministry-ation How the details of paperwork inform and assist
the ministry of the church

2. COMPENSATION

3. COMPENSATION What is compensation? Total package vs income vs taxable
Salary + housing + insurance + pension
All pastors of same status get same insurance and pension benefits.
Compensation form done at least annually
Done online usually at Charge Conference time

4. COMPENSATION Why did Al Capone go to jail?
Tax evasion
My goal is that your forms keep you out of jail!
Timeliness matters to the IRS
Accurate forms matter to the IRS
Your pension depends on accurate and timely paperwork
ANY adjustment to pay requires notification

5. HOUSING ALLOWANCE Two types of Housing Allowance
Housing Allowance in lieu of parsonage
Housing allowance where you exclude part of your income used to furnish and maintain the home or parsonage from income tax
Both require Resolution and records
3 – point standard
Never retroactive

6. ACCOUNTABLE REIMBURSEMENT
Church should have an AR set up to reimburse you for ordinary business expenses
Mileage Meals Books
Must be reimbursed by voucher/receipt, or it is taxable income
Anything purchased with AR funds belongs to church

7. MILEAGE
Church may select IRS rate, Conference rate, or set their own reimbursement rate
If they reimburse more than IRS rate, it is taxable
If they reimburse less than IRS rate, you can claim difference as business expense
Always better to take AR reimbursement than deduct mileage on taxes
Contemporaneous record required

8. BIG TAKAWAY – COMPENSATION
If you only do one thing right in ad-ministry-ation, get your compensation right
What message do you send to your people if you can’t even get your own pay correct?

9. TAX MATTERS

10. YOUR TAX STATUS You are an employee of the church
By statute, for Social Security purposes only, you are self-employed
You get a W-2 (NOT a 1099)
Housing Allowance is excluded from income tax, but not from SS tax
AR is not taxable if done right

11. CHURCH TAX RESPONSIBILITY
Church may withhold federal and state income taxes
Church cannot withhold social security taxes
Church may withhold excess income tax
Church must issue a W-2
Sample W-2 on sgaumc.org
Compensation form has W-2 notes
Call us!

12. YOUR TAX RESPONSIBILITY
Do AR correctly
Get Fair rental value of parsonage (and pay SS taxes on it)
Pay quarterly income taxes if church does not withhold
Keep mileage records
Honoraria is taxable

13. TAX INTEGRITY Tax cheating is little more than theft
Your people will know your character by your actions

14. BIG TAKEAWAY - TAXES The details matter To you To your church
To the IRS
To God

15. STATISTICS AND APPORTIONMENTS

16. STATISTICAL TABLES Done annually (online) 4 purposes
Accountability
Research
Apportionments (both conference and general)
For church to use in discerning the effectiveness of their ministry
Yes, there is a deadline, and if you miss it, you’re a deadbeat!

17. STATISTICAL TABLES Pastor is responsible
Does not mean pastor must do it
We provide 2 logins – one for pastor, one for secretary, treasurer, whomever assists
You can already know what we are going to ask, so you know what to track
Someone in your church likes numbers
We import numbers from dashboard and payments

18. STATISTICAL TABLES Table II Finances – expenses, not income
We will import payments on benefits, apportionments, and mission specials sent through Conference Treasurer
The financial report the church uses may group expenses differently than the statistical table does – that’s OK
Table III income
Used for research, not apportionments

19. APPORTIONMENTS
Apportionments are just the Annual Conference budget (voted on at AC every year) “apportioned” to the churches
Apportionment formula
Big churches pay more than small churches
Wealthy churches pay more than poorer churches
Apportionments done by formula, not case-by-case – treat everyone the same

20. APPORTIONMENTS We use your statistics to determine size and wealth
Membership
Expenses (not income, not assets)
Two year average to smooth out
See statistical tables for actual lines used
Preliminary vs Final apportionments
Have I mentioned that it’s helpful to get your statistics correct?

21. USING DATA www.umdata.org Track the trends Easy graphs to share
Tracking is only useful if it then leads to action

22. BIG TAKEAWAY – STATS AND ASKINGS
You know its coming, you know what will be asked – prepare
You don’t have to do it, you have to make sure it is done
You can see the trendlines for your church, if you look

23. FINDING RESOURCES

24. RESOURCES www.sgaumc.org www.gcfa.org www.wespath.org www.umdata.org
Administrative Services office
Forms
Tax packet, Charge conference forms, etc.
Also printing church 501.c.3
HealthFlex/WebMD
Benefits access (also app)
Graphs of stats

25. PENSION & DISABILITY BENEFITS

26. PENSION BENEFITS
All licensed pastors get pension benefits, no matter what the salary
Pension is based on “plan compensation” (salary + housing)
If in parsonage, multiply salary by 1.25 to get “plan compensation”

27. PENSION BENEFITS
Main pension plan is Clergy Retirement Security Plan (CRSP)
We have a hybrid pension plan
CRSP-DB is defined benefit (turns into a monthly check)
CRSP-DC is defined contribution (turns into a lump sum you can get in several ways
Your CRSP benefit is paid by the church

28. PENSION BENEFITS
Personal pension contributions go into United Methodist Personal Investment Plan (UMPIP)
1% minimum to get match - 3% is more normal
Must be withheld, paid by Treasurer
Can do pre-tax, after-tax, or Roth
Auto-enrollment beginning this fall

29. PENSION BENEFITS
If your compensation form is right, bill for UMPIP will be right
UMPIP can be changed mid-year
Can rollover IRA into UMPIP without tax consequence
Upon retirement, UMPIP can be received as lump sum, monthly checks, or whatever

30. PENSION BENEFITS ¾ time and FT pastors are in CRSP
¼ and ½ time pastors get 14% of plan compensation put into UMPIP
Upon retirement, we designate 100% of funds received from Wespath as housing allowance
Housing allowance not passed on to spouse at your death

31. COMPREHENSIVE PROTECTION PLAN
For ¾ and FT pastors
Death benefit
$50,000 if active
$13,775 for spouse if active (2017 benefit)
Child death benefit
Some benefits adjust
Lower benefit once retired
Education benefit for surviving children
Keep beneficiary form current

32. COMPREHENSIVE PROTECTION PLAN
For ¾ and FT pastors
Disability benefit
70% of PC for 2 years
Then coordinates with Social Security
First 2 years meet our standard (cannot do work of UM pastor)
After that, meet SS standard (cannot work)
Not divided into short-term and long-term, just disability
Can be retroactive

33. HEALTH BENEFITS

34. HEALTHFLEX Mandatory health insurance for full-time pastors
Church pays “defined contribution” for pastor
Optional insurance for spouse and family
Pastor pays for spouse and family
Health Insurance not available for part-time clergy

35. HEALTHFLEX
HealthFlex Exchange offers 6 choices of health insurance plans
Dental and vision options
You have $909 to “shop” with
Can buy up or buy down
Full descriptions on sgaumc.org
Select plan each year during open enrollment
Call us!

36. BIG TAKEAWAY -- BENEFITS
United Methodist clergy have very rich benefits compared to the private sector
Your pension will not be enough if you do not contribute

37. CHARGE CONFERENCE

38. CHARGE CONFERENCE Forms, Forms, and more Forms!
Downloadable – see sgaumc.org
Some info is entered online (Compensation form, Leadership list)
Packet provided today with some forms
Each DS will explain precisely what they want

39. CHARGE CONFERENCE
Great time to review the church insurance coverage – so many have only property coverage
Worker’s Comp is mandated for pastor
D&O coverage, employee crime/ dishonesty, and employment practices liability are highly recommended
Make sure liability covers sexual misconduct for staff and volunteers

40. CHARGE CONFERENCE
Special forms – approving Lay Speakers and Candidates for Ministry – require rejoicing
GET LEADERSHIP IN DASHBOARD with s – we do very little paper mailing anymore, much targeted ing
We do not share our list, so the address is as safe as any are these days.
Leadership has time limits – mark them.

41. BIG TAKEAWAY CHARGE CONFERENCE
It has to be done
Get a detail person in your church to help you
Find last year’s copy
DO THE DASHBOARD

42. Ad-Ministry-ation

43. BIG TAKEAWAY AD-MINISTRY
Ad-ministry helps the church care for its pastor
Ad-ministry helps the pastor care for their family
Ad-ministry assists the church in analyzing the effectiveness of its ministry
Ad-ministry meets your obligation to the work of others
Those who are faithful in the little things will be rewarded

44. CONTACT US: Administrative Services Office
P O Box 13145
Macon, GA
520 Professional Dr, Ste 1
Macon, GA

45. Director of Administrative Services
CONTACT US
Derek W. McAleer
Director of Administrative Services
Cell
Eleanor Dickson
Pensions/Insurance
Beth Acuff
Apportionments
Laura Hatcher
Accountant