February 10, 2016
If you compensate your full-time church staff on a salary or hourly basis, you should be aware of how those positions are defined by the Fair Labor Standards Act.
Exempt (which includes most salaried positions) employees fall under one of the following three categories:
Exempt employees' compensation is based on the type of work they perform rather than the number of hours they work.
It’s a common mistake to classify a worker as “exempt” in order to pay the position a salary, rather than an hourly wage. Be aware that a title alone—such as “administrative assistant”— does not make a worker an exempt employee. The employee must meet specific tests regarding job duties and salary amount to qualify. Most support staff and clerical workers do not meet the standard.
With limited exceptions, exempt employees' pay may not be reduced for partial-day absences.
Nonexempt (or hourly) employees are paid for the actual hours worked. Accurate records must be kept to ensure that proper compensation is given. While you can usually require a nonexempt employee to work overtime, you must pay time-and-a-half for any work done in excess of 40 hours in a seven-day week.
Overtime must be paid as “pay,” not as a promise of future time off. Employers may only offer time off if it's taken within the same week that the employee works more hours than scheduled on a given day. For example, if an employee works one hour more on Tuesday, the ministry can permit the employee to work one hour less on a remaining day of the same week to avoid overtime pay. Nonexempt employees cannot voluntarily work overtime without pay.
There are a lot of hats worn in any growing ministry – and we want to serve every one of them.
With the holiday season right around the corner, it’s wise for ministries to evaluate their fire safety plan. Whether your ministry is hosting a holiday party, prepping treats for charity, or running a community kitchen, make sure you’re well-prepared with these tips.
The holidays present unique opportunities and challenges for churches that aren’t typical during other times of the year. A lot of the ministries that I work with are seeing steady increases in attendance and are praying for a significant jump in Christmas service participation this year.
In this article, Brad Brown from Plan A Wealth Management gives a wonderful insight into why ministries might consider choosing a 403(B)(9) retirement plan.