Employer’s Toolbox

Our Employer’s Toolbox Series was created with the unique needs of churches and ministries in mind. Here, you’ll find helpful resources and guidance on financial matters that impact organizations, so you can make the best decisions as an employer. Not finding the answer to a specific question? Reach out to us directly here.

Below you will find various education resources: booklets, calculators, videos and website links. They are organized for treasurers/employers as compensation resources, tax resources and miscellaneous additional resources.

*Note: Each of the articles provided may be viewed and printed using Adobe Reader.


Compensation Resources

Here at Servant Solutions, we want to help you with the important task of planning proper compensation and benefits for those who serve. Every church should ensure the pastor and any other full-time staff members have adequate salary along with other benefits (church-funded medical plan, life and disability insurance, contributions into the Servant Solutions Retirement Plan, etc.). It is also very important not to confuse ministry-related expenses as part of the employee’s pay. Looking for answers? Check out our guides and resources below, or get in touch with us directly

Compensation Planning
An 8-page guide to assist church leaders in compensation planning for ministry personnel.

Eight Essentials of Retirement Planning for Ministers and Churches
This eBook lays out the roles of both the church and the minister, best practices to do what is right before God and man in planning for a minister’s retirement.

Church & Non Profit Tax Guide
by Michael Martin
Federal, state, and other reporting made easy.

Here at Servant Solutions, we want to assist you in the important task of planning proper compensation and benefits for your employees. Every ministry should see that all full-time staff member have adequate salary along with other benefits (church-funded medical plan, life and disability insurance, and contributions into the Servant Solutions Retirement Plan, etc.). It is also very important not to confuse ministry-related expenses as part of the employee’s pay.

Housing for Your Pastor: Parsonage or Housing Allowance?
A useful explanation of the advantages/disadvantages of tax-advantaged housing for your pastor.

Church Employees or Independent Contractors? A useful explanation of how the IRS sees different employees to help you comply with requirements for withholding and reporting.

Strategies for Structuring Ministerial Compensation Ministers and churches are realizing the need to differentiate between the "cost of having a ministry" and the "cost of compensating a minister”, and their "package" approach does not provide nearly as much true cash salary as they had thought.

Worker’s Compensation Laws and the Local Church
A brief article on worker’s compensation laws and the importance of quality liability insurance.

Auto and Other Business Expense Reimbursements
Best practices for ministers on how to provide employees with full reimbursement of business transportation, travel, and other business and professional expenses.

The Minister’s Housing Allowance
Explanation of the tax benefits available to ministers who receive a portion of their compensation package as housing allowance.

Health Reimbursement Arrangements - The New QSEHRA
A brief discussion on the benefits of offering a qualified church HRA and the requirements that must be satisfied.

Healthcare Resources and Considerations for Churches Options and considerations for churches regarding the ever-changing landscape of medical care and the Affordable Care Act.


Tax Resources

There’s a lot of information when it comes to filing taxes. We understand how daunting it can be to sort through and understand—that’s why we have compiled these resources. Below, we’ve provided detailed info about how to report retirement income received from Servant Solutions and best practices for handling your allowance and Social Security.

Form 1099-R Tax Filing Information
Informational sheet explaining how to report retirement income you received from Servant Solutions.

Minimizing Income Taxes for Church Employees
Some suggestions on appropriately structuring compensation packages and a reminder of the importance for church boards to periodically review the salary structure of all their employees.

Can Ministers Opt Out of Social Security?
Informational sheet explaining the best way to handle Social Security as a minister.

Who is a Minister for Tax Purposes?
Explanation of how the IRS determines who qualifies as a minister for tax purposes.

Form 1099-MISC & 1099-NEC Information
Details regarding the IRS form that is required to be provided to all non-employees of the church who meet specific compensation conditions.

Tax and Reporting Procedures for Congregations
An overview of many of the basic federal tax and reporting issues that are essential for Church Treasurers to understand.


Additional Resources

Are you looking for a reliable resource as you structure your compensation package? Access compensation worksheets below to determine pay estimates for specific ministry positions or fill out our Servant Solutions form and we’ll prepare a rough estimate on the position in question.

Compensation worksheets:

In addition to providing individual retirement options and financial tools for ministers, we can help churches and organizations establish proper compensation and benefits plans to serve their entire staff. Let our trusted financial advisors take away the burden of navigating the complexities on your own. Explore the advantages available to your organization through our comprehensive approach. It's one easy way to ensure everyone on your church staff is receiving the right resources and support for your organization’s retirement plan.

Financial Audit Preparation
Recommendations for preparation and execution of a church financial audit.

The Annual Church Audit
The importance of and best practices for the annual church audit.

Servant Solutions and Church of God Ministries has partnered to offer access to the best resources available to assist your church regarding budgeting, compensation, current tax laws and regulations. This resource is CHURCHEXCEL, available through ECFA (Evangelical Council for Financial Accountability).  The EFCA website includes many downloadable resources such as:  Printable Manuals, Electronic Tax Guides, Podcasts, and Webinars.

if the resources above do not fit your needs or timing, Servant Solutions can prepare a rough estimate for specific positions.  If interested, please click here.


If you have other topics that you would like addressed, please feel free to contact us.

Disclaimer: The Toolbox series is presented as assistance to ministers, employees, employers, treasurers, and Boards and is not intended as specific tax or legal advice.  You should contact your local accounting and legal advisers for specific assistance.