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| Credit: Creative Commons (lef-hand) |
Most of these questions are very detail-oriented and have to do with your total compensation at your church. Some might feel like if you are taking a ministry position, you shouldn't be too finicky about the details of your compensation plan; after all, you're in ministry to serve, not to make a ton of money. But if you want to be at a church where your family can serve for the long haul, it's your responsibility to ask the questions you need to in order to make sure there are no surprises when you get your first paycheck or do your taxes next April. (NOTE: For a great post on making enough money in youth ministry to support your family, check out Tim Schmoyer's blog here.)
What health insurance coverage do you offer, and what is the employee contribution?
My wife and I are blessed to have great health insurance provided by our church where I work. However, the kind of health coverage--and how much you are expected to pay in monthly premiums to be a part of the church's employee plan--can make a big difference to how much money is actually in your paycheck each month. Make sure that you have details about the church's health care plan and how much you'd have to pay per month to take advantage of it in writing, then factor that into your "take-home" pay.
How much vacation per year would I have? Trust me on this one: Time away from your duties as a youth worker or pastor is gold to your family and your own well-being. Your family needs more than two weeks a year where it is guaranteed you will be able to be with them without any pastoral emergencies, 9pm texts from students, or Friday night events. A church may not be able to put more money into a package, but it will cost them just about nothing to give a bit more vacation time. Don't be afraid to ask for it.
Would I be classified as a licensed or ordained minister? According to current tax laws, clergy do not pay income tax on the portion of their salary that they spend on housing. Consult your accountant or tax professional on how to take full advantage of this perk to being a pastor.
Do you pay half of your pastors' Medicare and Social Security tax?
Since clergy are self-employed in they eyes of the IRS, you may not have your FICA tax taken out of your paycheck. The total tax for FICA (Federal Insurance Contributions Act) tax is 15.3% of your salary. In a normal employment situation, you pay half of that amount, and the employer is required to pay half (so 7.65% would be taken out of your check). If you are self-employed, however, you are on the hook for the entire 15.3%. Many churches will still pay half of the FICA tax above and beyond your salary, though they are not legally required to do so. Make sure you ask how the FICA tax is handled at that church.
Does the church contribute to a retirement plan for employees? If your church contributes (or matches your contributions) to a retirement plan for employees, this is a really nice benefit. As a dad of a young family working on the Dave Ramsey plan to be debt-free (only two years to go!), it gives me HUGE peace of mind that we still have a growing retirement fund (that we don't personally contribute to) because such contributions are a part of our benefits package.
Are there any other benefits that are part of the salary package that I may not be aware of? Topics such as mileage reimbursement or a professional account for books and conferences are not always talked about in detail when someone offers you a job. I was pleasantly surprised during my first week on the job at my current church when I found out about some small but very nice benefits I would be given that I hadn't even thought to ask about.
Above all, don't be afraid to politely ask detailed questions. If the church that's offering your a job has their priorities straight, they will have no problem giving you all the information you need to make a great decision for your family.
