Highlights
Nearly all congregational ministers are employees, not independent contractors.
Is Our Minister an Employee or an Independent Contractor?
Almost all ministers (and others who work in congregations) are classified as employees, not as independent contractors.
Special Tax Provisions
Clergy tax provisions apply to ministers who are fellowshipped (have completed the UUA’s ministerial credentialing process) and/or ordained. For more information on special tax provisions for ministers, read Ministerial Tax Status (PDF).
Compensation
The UUA Office of Church Staff Finances assists congregations in setting appropriate salaries for ministers and other staff by providing salary recommendations based on wage surveys from religious denominations and non-profits. Recommendations are geographically-based and vary by membership size.
Model Agreements
The UUA, together with the UU Ministers Association and other stakeholders, has developed several model agreements for ministers that include provisions such as sick/disability/parental leave. We recommend using the language in these agreements to provide clarity, especially if problems arise.
Additional Information and Support
Employee compensation is a complicated area of church administration – all the more so with respect to ministers. The Office of Church Staff Finances (OCSF) welcomes questions from congregational staff and lay leaders. See the main OCSF page for information about our office, including a staff listing. We also suggest the following resources:
About the Authors
Richard A. Nugent has directed the UUA Office of Church Staff Finances (OCSF) since August 2008. In that capacity, he leads a team managing the UUA’s retirement plan, national health plan, and other employee benefit plans. In addition, the OCSF serves as a HR resource to UUA member congregations...
When was the scale of fees removed from the guidelines?
2011: The scale of fees was removed from the Guidelines document and revisions adopted by the Executive Committee in March 2011 and presented to the membership at the June 2011 Annual Meeting.
When was the UUMA survey conducted?
2004: A survey of usual, customary, and desired fees was conducted in August 2003 by Barbara Davenport and Arthur Berman of the UUMA guidelines revision committee. Data were gathered from: UUMA Chapter Presidents, the UUMA chat line and key informant questionnaires, covering varying congregation sizes and locations in North America. These recommendations were passed at the June 2004 Annual Meeting and included in the Guidelines.
Highlights
Is Our Minister An Employee Or An Independent Contractor?
- Almost all ministers (and others who work in congregations) are classified as employees, not as independent contractors. 1. The congregation should issue a W-2 form to the minister. Our W-2 Form Instructions (PDF)provide guidance for each box of the W-2, for ministers and for other staff. 2. Although ministers are employees for income tax and other purposes, they are treated a…
Special Tax Provisions
- Who Is Considered a Minister for Tax Purposes?
Clergy tax provisions apply to ministers who are fellowshipped (have completed the UUA’s ministerial credentialing process) and/or ordained. For more information on special tax provisions for ministers, read Ministerial Tax Status (PDF). - Payment in Lieu of FICA
Even though they are employees, ministers are treated as self-employed for the purpose of Social Security/Medicare payments. This is referred to as “dual tax status.” 1. Ordinarily, the Social Security/Medicare tax (currently 15.3% of salary) is shared between employer and employee in t…
Compensation
- Salary Recommendations
The UUA Office of Church Staff Finances assists congregations in setting appropriate salaries for ministers and other staff by providing salary recommendations based on wage surveys from religious denominations and non-profits. Recommendations are geographically-based and vary … - Benefit Recommendations
The UUA Benefit Recommendationswill guide you in offering benefits to staff. Subject to each plan’s eligibility requirements, ministers and other employees of UU congregations and UUA-related organizations are expected to receive: 1. Retirement Plan contributions 2. Health insuran…
Model Agreements
- The UUA, together with the UU Ministers Association and other stakeholders, has developed several model agreements for ministers that include provisions such as sick/disability/parental leave. We recommend using the language in these agreements to provide clarity, especially if problems arise. Current model agreements are available on the Employment Agreementspage f…
Additional Information and Support
- Employee compensation is a complicated area of church administration – all the more so with respect to ministers. The Office of Church Staff Finances (OCSF) welcomes questions from congregational staff and lay leaders. See the main OCSF pagefor information about our office, including a staff listing. We also suggest the following resources: 1. Your regional compensatio…
Additional Resources
- Pay Administration Checklist (Word) (PDF): Legal requirements, including a section specifically on ministerial compensation