Ministerial Compensation

Boost your confidence in managing ministerial payroll. We’ll help you understand the special tax provisions that apply to ministers—dual tax status, housing allowance, and voluntary withholding.

Important note: Your minister is an employee. Unless a minister is simply doing guest preaching or occasional consulting, they are to be treated as an employee. Even if they are called a "contract minister," they are an employee. See the second article of our April 2019 Compensation and Staffing News publication and our Employee or Independent Contractor page.

Please refer to our Salary Recommendations for Congregational Staff page for salary guidance, and to UUA Compensation Guidelines regarding recommended benefit levels.

Understanding Ministerial Compensation

• Video recording (YouTube) and slides (PDF) from Ministerial Compensation: Unraveling the Complexities for Lay Leaders, a March 2017 webinar led by Rev. Richard Nugent and Jan Gartner from the UUA Office of Church Staff Finances.

• Ministerial Compensation 101 (PDF): Covers the basics of ministerial compensation
• Ministerial Tax Status (PDF): Describes special tax provisions for ministers
• Housing Allowance (PDF): Explains the clergy housing allowance and tax implications

Additional Resources

• Negotiating an Agreement: Key Considerations for Ministers
• Housing Allowance Calculation Form: Helps ministers determine the appropriate amount to claim as Housing Allowance.
• UUA Compensation Worksheet (Excel): Based on UUA Compensation Guidelines.
• W2 Instructions (2018 Tax Year) (PDF): Guidance for completing the W2 form, showing ministerial and non-ministerial instructions side-by-side.