Minimum Compensation for Supply Clergy
as of 6/15/20
The diocesan minimum compensation for supply clergy is $150 for officiating at one service on a Sunday and $180 for officiating at two services, plus reimbursement for travel at the IRS allowable rate (currently 57¢ per mile) and any additional accountable, reimbursable busi- ness expenses. The compensation for supply clergy for funerals and weddings is $150, plus reimbursement for travel and other expenses.
Compensation will also be provided on a negotiated basis for services (such as pastoral care that involves extensive amounts of time on a Sunday or pre-marital counseling) over and above Sunday supply work. Minimum compensation for midweek “chapel” supply work is $75 per service, plus travel.
If a member of the clergy is supplying a congregation and is called to officiate at marriages or funerals, the minimum compensation for the service to be paid by the congregation to the member of the clergy is $150, plus travel. If the member of the clergy receives an honorarium from the persons being married or the family of the deceased, the member of the clergy gives the honorarium to the congregation, after endorsing the check (if the gift is in the form of a check). This honorarium is accounted for as a charitable contribution from the donor to the church.
At the discretion of the member of the clergy, a portion of the compensation can be declared as a housing allowance, provided that the declaration is a part of the vestry minutes of the congregation and substantiated by a fair rental value appraisal. For help with this declaration, please contact the diocesan office.
A separate check will be issued for mileage and other accountable, reimbursable business expenses.
At the end of each year the congregation is responsible for providing the member of the clergy a W-2 statement for all compensation as a result of supply work. For help in completing this form, please contact the diocesan office.
Pension Fund Requirements
Congregations will make payments into a retirement account for clergy as follows:
- If the member of the clergy is eligible for Church Pension Fund assessments, and is paid at least $200 per month by the same employer for at least three consecutive months, the amount of the payment to the Church Pension Fund is 18% of salary.
- If the member of the clergy is drawing retirement benefits from the Church Pension Fund, and is under the age of 72, and is paid at least $200 per month by the same employer for at least three consecutive months, the amount of the payment to a qualified tax-deferred retirement account is 18% of salary.
- If the member of the clergy is age 72 or older, there is no payment made to a retirement account or the Church Pension Fund.
- Normally, deacons are not assessed for payments into the Church Pension Fund because they generally are not participants in the plan. In this case, if the deacon performing supply work is under the age of 72, and is paid at least $200 per month by the same employer for at least three consecutive months, the amount of the payment to a qualified tax-deferred retirement account is 18% of salary. Please check with the deacon to see if he or she is, or is not, assessed by the Church Pension Fund for pension payments.
For members of the clergy who are eligible for Church Pension Fund assessments, the Church Pension Fund is notified as follows:
- Provide the supply clergy with the “New Assignment Notice” or the “Report of Change in a Cleric’s Compensation or Duties.” Copies can be downloaded and printed from the Church Pension Group website. The member of the clergy completes and signs the form and sends it to The Church Pension Fund.
- Copies should be provided to the supply priest, the congregation, and the diocesan office. Accompany this form with an explanatory letter if necessary. The Church Pension Fund will bill the congregation quarterly for 18% of the compensation paid to the supply priest.
- When the contract with the supply priest is completed, or if the compensation figures change, submit an updated “Report of Change in a Cleric’s Compensation or Duties” to The Church Pension Fund, providing copies to those listed in #1 above. The form is available online from CPG.
Prompt attention to these matters will avoid unnecessary billing errors.