Compensation and Payroll: Financial Matters
The Office of Church Staff Finances, a division of Ministries and Faith Development, offers compensation and staffing-related financial information to congregational leaders, clergy and staff.
Topics of Special Interest
Fair Labor Standards Act
Both federal and state laws require most employers to pay their employees minimum wages and overtime. Our FAQ sheet on the FLSA (PDF) provides basic information about these requirements, including the criteria for determining which employees can be considered exempt. Note: a new salary basis goes into effect in December 2016; some employees who are currently exempt may no longer meet the salary basis test after December 1.
Employee or Independent Contractor?
Congregations need to determine whether the individuals they compensate are employees or independent contractors.
- See our Employee or Independent Contractor FAQ sheet (Word) for special guidance on clergy, with some information applicable to other staff.
- This Independent Contractor or Employee? page from the IRS describes the behavioral, financial, and relationship factors that help you make the proper determination.