How does the Clergy Compensation Report work?
This report exists in Excel in order to make completing this form easier for the local churches. Upon entering figures in the appropriate boxes, other salary and benefit information will automatically calculate depending on the information you entered. In order for these amounts to calculate correctly, please only complete this report in Excel. Handwritten forms cannot be accepted.
Do not delete any of the numbers that automatically calculate in this report. Doing this may delete the formulas, and your final product may be incorrect. If you know you made a mistake on a particular figure, simply delete that figure where you entered it and reenter the correct amount; the rest of the form will fix itself. If you have made a mistake and are not sure if the overall numbers are correct, delete the form you have, download a blank one from the website, and start over. Every compensation report that is submitted is reviewed for correctness. We will let you know if we spot an error. If you are still unsure on how to complete this report, please contact your Regional Administrator.
Where can I download the Clergy Compensation Report?
What is different about this year’s Clergy Compensation Report?
A number of improvements have been made to this year’s Clergy Compensation Report. The report has been streamlined in order to make it easier to understand and complete. Also, hyperlinks have been added throughout the report to provide easy access to pertinent benefits information.
For more detailed information, please refer to the Clergy Compensation Report Instructions found here.
Why should I read the Clergy Compensation Report Instructions?
This year’s instructions have been completely redone to include much more information regarding how to properly and easily complete the Clergy Compensation Report. The instructions now better answer many common questions that we have heard from the local churches. It is highly recommend to read these instructions in full before completing this report.
Who and how should we complete and submit the Clergy Compensation Report?
This report is completed by the SPRC and then brought to the Church Council for approval and signature prior to submission to the regional office. This report should then be submitted via email to your Regional Administrator by the same deadline date as all your other church conference forms. The recommendation becomes final after action by the Church Conference and the signature of the District Superintendent.
Why should we sign the Clergy Compensation Report ahead of time?
It is recommended to get signatures before sending this report to the regional office. Signatures indicate that the salary package has been approved by the appropriate body. Final approval is contingent upon a vote by the Church Conference and the signature of the District Superintendent. Getting signatures ahead of time will prevent you being contacted for signatures after your church conference if everyone that needs to sign the report was not present.
What is the difference between a Housing Allowance and a Housing Exclusion (Line 5 and Line 11 on the Clergy Compensation Report)?
There is an important difference between these two lines. Please refer to the Clergy Compensation Report Instructions.
Where is the Housing Exclusion Resolution Form? I cannot find it.
In order to make completing the Housing Exclusion Resolution easier which is required from all clergy (IRS requirement), this form has now been added as a third page into the Clergy Compensation Report. Page 3 of this report will automatically be completed for you upon entering amounts on pages 1 and 2. Only the pastor’s home address will need to be manually entered on page 3. This will save time by not having to download and complete an additional form.
Why does a pastor need to complete a Housing Exclusion Resolution Form even if he/she is not taking one?
This form is needed to meet IRS requirements that allows a clergy person to exclude a portion of his/her salary spent on maintaining or furnishing a home (either in a parsonage or in his/her own home) from taxable income. It may not be done retroactively, and only that amount that is actually spent and can be accounted for can be claimed. Any amount set aside and not spent must be added into the taxable amount by the clergy person.
How do we calculate our pastor’s minimum salary?
The Minimum Equitable Salary Guide is used to determine a pastor’s required minimum salary according to his/her status and years of full time service. As approved by the Annual Conference, only full time years of service are used to calculate the minimum salary (part time equivalents are not eligible). Pastors receiving their first full time appointment will move to level one on January 1st after having been appointed for a complete appointment year. For example, a pastor receiving his/her first full time appointment on July 1, 2018 would move to level one on January 1, 2020. Please check with your pastor to determine their number of full time years under appointment.
What parts of the Clergy Compensation Report are up to the pastor’s discretion?
Each pastor has certain decisions to make regarding the salary and benefits he/she receives. On the Clergy Compensation Report, the following are left up to the pastor’s discretion:
- Will he/she contribute into UMPIP? If so, will it be designated on Line 7 (tax-sheltered) or Line 13 (taxable in the current year)?
- Will he/she designate a Flexible Spending Account Contribution (Line 10)?
- Will he/she designate a Housing Exclusion amount (Line 11)?
- If he/she is full time and receiving health insurance, will he/she’s 2% salary contribution be placed on Line 9 (tax-sheltered) or Line 14 (taxable in the current year)?
What do we do differently on this report if our pastor is part of a clergy couple?
If serving full time as part of a clergy couple, please enter the health insurance premium agreed upon by each church on Line 21 which is most commonly an even split of the premium amount. Line 9 must also manually be changed to represent a 1% salary contribution by each spouse.
What do Lines 24-27 represent on the Clergy Compensation Report?
These lines represent various benefits that clergy are potentially eligible to receive depending on their conference relationship and appointment status.
- Line 24: Clergy Retirement Security Program (CRSP)
CRSP is a retirement program providing lifetime income for those who serve as clergy in The United Methodist Church.
- Line 25: Comprehensive Protection Plan (CPP)
CPP provides death benefits, long-term disability income replacement, and certain other survivor benefits for eligible clergy of The United Methodist Church and their families.
- Line 26: UM Personal Investment Plan (UMPIP)
This line represents the church’s contribution to UMPIP which is a retirement plan administered by Wespath Benefits and Investments. This benefit is only available to pastors serving ¼ time that are no longer eligible to receive CRSP.
- Line 27: UMLife Options
This is long-term disability and life insurance coverage offered to eligible United Methodist clergy and lay employees.
What is UMPIP (Line 7 or Line 13 on the Clergy Compensation Report)?
United Methodist Personal Investment Plan (UMPIP) is a retirement plan administered by Wespath Benefits and Investments. A pastor may choose to have this amount withheld from his/her salary and sent to Wespath for investment in their Personal Investment Plan on either a tax-deferred or an after-tax basis. Contribution to UMPIP is strongly recommended and is the option of the pastor.
Per 2012 General Conference changes, pastors contributing at least 1% of Plan Compensation into UMPIP will gain an additional 1% match into CRSP.
Pastors must complete a Contribution Election Form if this is a new appointment or a new election. This form is to be filed at the local church. This form and more information on UMPIP can be found here.
How do I enroll in UMPIP?
Newly appointed pastors or currently appointed pastors that are transferring to another church or making a new election that wish to enroll or remain enrolled in UMPIP, must complete a new Contribution Election Form. Entering a UMPIP amount on the Clergy Compensation Report does not automatically enroll you in the plan.
Churches are the plan sponsor for the purposes of personal contributions for clergy and are responsible to complete “Part 7” of the Contribution Election Form prior to submitting to Wespath Benefits and Investments. The local church will receive a bill from Wespath each month for the pastor’s contributions. Because this is an agreement between the local church and the pastor, local churches must keep a copy of the Contribution Election Form on file. This form can be found here.
How do I determine which of the benefits listed above our pastor is eligible to receive?
A guide is available to all local churches that explains which benefits a pastor is eligible to receive depending on his/her conference relationship and appointment status. To download this guide, please click here.