Church Compensation FAQs

Do I need my compensation reviewed?

Probably. Regardless of the size of your organization or the level of your compensation, IRS regulations requires that executive compensation be “reasonable.” If that sounds confusing, don’t worry. We’re here to help.

When should compensation amounts be determined and set?

The Board of Directors, or depending on circumstances, an independent compensation committee of the Board of Directors, should analyze and determine compensation amounts prior to the compensation being paid.  Compensation amounts should be documented in detail for each element of compensation, including taxable and non-taxable benefits that each qualified person will be paid for the upcoming year.

What are compensation minutes?

Compensation minutes contain the specific language required by the IRS to document the approval of compensation amounts. We regularly assist clients with these.

What is an executive compensation report?

For a comprehensive analysis, we offer executive compensation reports. These customized reports are an in-depth study of the ministry’s background and the employees’ duties. We consider many factors and collect many facts before issuing our opinion on reasonable compensation levels for the employees under consideration.

What tools can ChurchShield provide to assist in getting my compensation in compliance?

ChurchShield can provide compensation compliance assessment tools (spreadsheets, for example) to help track your compensation throughout the year. We can also help you determine which forms of compensation are taxable and which ones are not.


How much will compensation compliance cost?

Because every ministry is unique, we quote all work on an individual basis. All quotes are always free and carry no obligation.

How do we get started?

Send us a message or give us a call at 317-570-9573.   

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