Forms 5, 6, 7, 8a, and 8b (Clergy Compensation) in PDF Format

Minnesota Annual Conference of The United Methodist Church 

Church Conference Forms 

122 W. Franklin Ave. #400, Minneapolis, MN 55404 

612-870-0058; info@minnesotaumc.org 

Please share the information on this form with your Church Treasurer. 

Please complete a separate salary sheet for each elder, deacon, probationary member, or licensed 

pastor appointed to this charge. If your pastor serves a multiple point charge, please fill out the total 

compensation from all charges on Form 5, and then include the breakdown for each church on Form 7. 

Auto-calculating form available in Excel format 

The Excel format version of the Pastoral Compensation forms will calculate the parsonage penalty 

adjustment, church and clergy share of MAC premiums, pension, disability, and total the different 

sections of forms 5 and 6. If the appointment is to multiple churches, form 7 will allow you to enter the 

percentage for each church then automatically calculate the amounts from forms 5 and 6 for each item. 

This format works well for appointments without special circumstances. We hope you give it a try. 

Note: The Excel format will not work for certain situations, such as appointments of clergy couples 

where both appointments pay a portion of the MAC premium, and appointments without pension and 

disability benefits (retired supply clergy, clergy who waived pension benefits). It is suggested to use the 

Word version these types of appointments. 

Information needed to complete the Clergy Compensation Forms: 

Clergy Name 

Years of Service 

Church(es) 

Appointment increment – In quarter increments (fulltime = 1, ¾ = .75, ½ = .5, and ¼ = .25) 

Salary 

Salary reductions - (Pastor must complete election forms for SelectAccount each year. If changing the 

UMPIP election a change form is required.) 

Housing Allowance – leave blank if parsonage is supplied 

Reimbursable amounts – Continuing Education, Travel, and Other Professional expenses 

Budget amount for parsonage utilities (this only applies when a parsonage is provided) 

Multiple church appointments will need the percentages paid by each church. If the breakdown is not by 

percentage, use the Word Format instead. 

Form 5 Pastoral Compensation Instructions by line: 

Line 1a) Pastor’s Salary - Minimum Salary Requirements: Consult the minimum salary schedule 

enclosed for determining the years of service of the clergy person and the required minimum base 

compensation. You may pay more than the minimum required. In the SPRC Training Manual, there are 

suggestions for setting clergy compensation. 

Line 1b) Parsonage Penalty Adjustment: (Only added for active clergy who receive a parsonage for their 

housing and receive pension benefits) Legislative item 504 approved at the 2011 Annual Conference 

Session adding the parsonage penalty adjustment to the clergy compensation form and compensation 

calculation. This adjustment is designed to offset the pension penalty of pastors who reside in





parsonages. Each year the penalty adjustment will be calculated by the Benefits Officer using the 

average housing allowance of fulltime Minnesota appointments and average parsonage value (25% of 

salary). The fulltime parsonage penalty adjustment calculation is: 3% of the difference between the 

average housing allowance and average parsonage value. For less than fulltime appointments with a 

parsonage the penalty adjustment will be the incremental proportion of the appointment to the fulltime 

penalty adjustment, 75%, 50% or 25%. The penalty adjustment does not apply to retired supply 

appointments. 

2013 Parsonage Penalty Adjustment amounts are: 

Fulltime appointment = 274.10 

¾ time appointment = 205.57 

½ time appointment = 137.05 

¼ time appointment = 68.52 

Note: Clergy waiving participation in the UMC pension plan or retired clergy serving an appointment are 

not eligible to receive the Parsonage Penalty Adjustment. 

Line 1c) Salary Reductions: Once the base cash compensation is determined, the pastor may choose to 

participate in voluntary reductions to; 

(1) ___ United Methodist Personal Investment Plan (UMPIP), (enrollment form required) 

(2) ___ Other 403(b) plan (not UMPIP) not recommended due legal requirements for the local 

church 

(3) ___ Furnishing/Appurtenance Allowance, (Resolution must be approved by church or 

charge conference) 

(4) ___ Clergy Share of MAC Premium (10%) – mandatory if participating in MAC Plan 

(5) ___ Medical Reimbursement (IRC 125) SelectAccount Plan (enrollment form required) 

(6) ___ Dependent Care Reimbursement (IRC 125) SelectAccount Plan (enrollment form 

required) 

Please note: The amounts listed on this form do not complete the process, enrollment forms are 

necessary. 

The 2013 contribution limits to 403(b) plans have not been released by the IRS at this time, the limits are 

indexed to inflation and will be announced by the IRS in the fourth quarter of 2012.The 2012 maximum 

contribution limits to 403(b) plans are $17,000 for taxpayers under age 50, and an additional $5,500 

catch-up option for taxpayers 50 and older. Each situation is unique, so please consult your tax advisor. 

Line 2) Housing Allowance: This is for churches that do not provide a parsonage. The amount would 

have been set when the appointment was made or when the pastor moved from a parsonage to a 

housing allowance. It should not change from year to year unless there is an increase in utility costs. 

Even if the amount of the cash housing allowance does not change, a new housing allowance 

declaration is required when there is a change in pastors. The housing allowance declaration of the 

previous pastor does not apply to the new pastor and the new pastor’s housing allowance declaration 

from the previous church does not apply to the new appointment. The pastor may choose to shift more





of their salary into their housing allowance for tax purposes, that would be shown on the housing 

allowance form approved by the church conference, and not here. Sample forms are numbered 8a and 

8b. Keep the approved Housing Resolution with the church conference minutes. 

Line 3) Health Insurance: The 2013 MAC Plan premiums was determined at the September 11, 2012 

Conference Board of Pension and Health Benefits meeting, there is no change in the premium for Active 

Clergy and Lay employee premiums, the 2013 premium is the same as 2012. The church pays 80 

percent, the conference 10 percent for appointments of ¾ time or more, and the clergy 10 percent, or 

20 percent if less than ¾ time appointment. Automatic withdrawal is available and does save the church 

money. It is mandatory for elders and provisional elders who are appointed full or ¾ time to be on the 

conference plan. 

Line 4) Pension (CRSP) and Death & Disability (CPP or UNUM) coverage: Please note that there is a 

maximum contribution for the CRSP pension and CPP disability plans and they are not based on the 

same compensation amount. Use the salary amount before salary reductions plus the parsonage penalty 

adjustment (lines 1a plus 1b) in the calculations along with the housing value. Both the CRSP and CPP or 

UNUM premiums are paid by the church, and are billed by the Minnesota Annual Conference. The 

UMPIP is a voluntary contribution by salary reduction pension program. If your pastor has elected to 

contribute to UMPIP the lead church will be billed separately by the General Board of Pension, and is to 

be paid by the church from monies withheld from the pastor’s salary. 

Less than full-time appointments: Adjustments are made to salary, housing, pension, and health 

insurance for less than full-time appointments. Please be in conversation with your district 

superintendent about your particular situation. 

W-2 reporting update: Health care reform and W-2 reporting information: 

(From the General Board of Pension and Health Benefits website) 

Background 

The Patient Protection and Affordable Care Act (PPACA) requires employers to report the aggregate 

cost of employer-provided health care coverage on employees’ Forms W-2. Initially this requirement 

was to be effective for the 2011 tax year—which means the information would have been required 

on Forms W-2 issued in January 2012. As posted previously, Notice 2010-69 issued in October 2010, 

made this requirement optional for all employers for the 2011 tax year Forms W-2 (furnished in 

January 2012). 

Extended Relief for Smaller Employers 

IRS Notice 2011-28, released in March 2011, provides further relief for smaller employers that issue 

fewer than 250 Forms W-2. This requirement is optional for such employers for the 2012 tax year 

(i.e., Forms W-2 furnished in January 2013) and will continue to be optional for smaller employers 

until the IRS issues further guidance. This means smaller employers (with fewer than 250 Forms W- 

2) will not be required to provide health care coverage cost information on employees’ Forms W-2 

any earlier than January 2014. 

Extended Relief for Certain Types of Coverage 

Notice 2011-28 provides additional temporary exemption with respect to certain types of employersponsored 

coverage. This transitional relief will continue at least through the 2012 tax year (for 

Forms W-2 due in January 2013), or until the IRS issues further guidance.





The value of certain types of health care coverage need not be reported on employees’ Form W-2, 

including: 

 

coverage under a self-insured church plan; (the Minnesota Conference’s MAC Plan) 

Taxable Income and W-2s: Not all the items on Form 5 are considered taxable income. The housing 

allowance, furnishing allowance, and fair market value of a parsonage provided to a pastor are not 

taxable income for income tax purposes and are not included on a W-2. These amounts are subject to 

social security tax (SECA) which the clergy reports and pays. Health and pension benefits are not subject 

to either income tax or social security tax. For guidance on completing W-2s, please consult the most 

recent Tax Packet & Tax Information provided by the General Council on Finance and Administration. It 

is available on their web site (www.gcfa.org). 

Other Pastoral Compensation Information: 

Form 6 Accountable Reimbursements 

A pastor must submit a receipt, invoice, or mileage log within a reasonable time for reimbursement of 

these items. The church sets an annual budget for continuing education, mileage, and professional 

expenses, meeting the conference minimum guidelines and the amounts are paid out when expended 

or invoiced. They cannot be paid as a monthly allowance. Nor can any unused portion of the fund be 

paid out to the pastor at the end of the year. To do so may cause the entire reimbursement plan to be 

taxable. Neither can an accountable reimbursement plan be set up as a salary reduction. These are 

funds provided in addition to the salary. Mileage is paid at the IRS rate, and does not include commuting 

between the home/parsonage and church. 

Form 7 Multiple Church Compensation and Other Expense Breakdown 

Using the totals from Forms 5 and 6. List the separate churches in the charge and their corresponding 

percent of compensation and expenses then calculate each line item. Be sure to add both across and 

down to verify totals. 

Average Compensation 

The Denominational Average Compensation (DAC) for 2013 is $63,867. The Conference Average 

Compensation (CAC) for 2013 is $59,646. These numbers are calculated by the General Board of Pension 

and Health Benefits and are based on cash salary plus housing allowance or parsonage value (25 percent 

of salary). 

Social Security Tax 

Clergy are in the unique position of paying the employer and employee share of the social security tax 

on both their salary and housing. Some churches, in recognition of that, seek to give their pastor a social 

security allowance. That is considered taxable income and must be reported on the W-2. A clergy may 

choose to have voluntary withholding of income taxes from their paycheck, including an extra amount 

withheld to cover the amount due in social security tax, and the church would send the tax withholdings 

to the IRS with their other payroll taxes and report it on the clergy’s W-2. However, the church cannot 

directly pay the employer share of FICA/SECA to the IRS for the clergy. 

If you need assistance in setting your pastor’s compensation or completing these forms, please contact 

your district office. 

Forms 5, 6, and 7 must be in the district office by December 1, 2012!





Equitable Compensation Schedule for 2013 

The minimum base compensation for 2013 is defined as the 2012 base compensation plus the Cost Of 

Living Adjustment (COLA) used by the federal government for the year we are in (that is, the Cost Of 

Living Adjustment announced last October for 2012 SSA, which was 3.6%). 

In addition there is a step increase of $700 for years of service for the first 8 steps. In keeping with our 

ongoing policy, the first step normally begins on January 1 following 18 months of service in the 

Minnesota Annual Conference. 

Base $34,624 

1 35,324 

2 36,024 

3 36,724 

4 37,424 

5 38,124 

6 38,824 

7 39,524 

8 40,224 

In considering additional compensation beyond these steps noted above the Staff/Pastor–Parish 

Relations Committee is encouraged to consider the announced Cost Of Living Adjustment and merit 

increases in their mutual negotiation with the pastor. 

Further, this proposal does not intend to reduce current compensation levels recommended by 

Staff/Pastor Parish Relations Committees and approved by the Church/Charge Conference during the 

ongoing tenure of a pastoral appointment. 

Further, in recognition of the financial realities and to allow for flexibility in the appointment process, 

exceptions to above equitable compensation policy can be approved by a ¾ vote of the Cabinet and the 

voluntary consent of the pastor involved. 

Seniority for clergy from other denominations and communions who have had their orders recognized 

by the Minnesota Annual Conference shall have their seniority status established by the Cabinet before 

their first appointment in the Minnesota Annual Conference. The Cabinet is urged to consider years of 

service in the ministry exercised in other denominations, especially those coming from the churches of 

the Commission on Pan-Methodist Cooperation and Union and other member churches of the Churches 

Uniting in Christ (See 625.10 in The 2008 Book of Discipline). 

Each year the Equitable Compensation Team is to submit this legislation for Annual Conference action.

2013 Minimum Compensation Schedule 

Years of Service Calculation for Equitable Compensation Salary increments 

A. Budget Year 

B. Year pastor began full-time service in The United Methodist Church 

C. Subtract Line B from Line A 

D. Subtract 1 year (to allow for Entry Level period) 

E. Pastor’s increment (if 0, use Entry Level period; if 9 or greater, minimum compensation is the 

greater of the 8th increment or the current Salary) 

A. 2013 

B. _________ 

C. _________ 

D. –1 

E. _________ 

Monthly billing for pensions is 1/12 of the total pension. For example, at the DAC level, the monthly 

billing would look like this: 

Example calculations: 

Compensation = $63,867 (salary + housing value + parsonage penalty adjustment if applicable) 

Pension (CRSP) = $63,867 X 12% = $7,664.04 

Disability (CPP) = $63,867 X 4.4% = 2,810.15 

Monthly Pension (CRSP) = $638.67 $7,664.04/ 12 months) 

Monthly Disability, (CPP) = $234.18 ($2,810.15 / 12 months) 

Total of CRSP and CPP = $872.85

ACTIVE CLERGY 

¾ to fulltime 

appointment 

Single coverage, 

clergy* 

Family 

coverage, 

clergy* 

LAY Employees 

2013 MAC Plan Premiums for Active Clergy and Lay Employees 

(monthly & annual amounts) 

Payment By ACH Clergy Portion Payment Not ACH Conference Subsidy 

Monthly Annually Monthly Annually Monthly Annually Monthly Annually 

594.80 7,137.60 74.30 891.60 604.80 7,257.60 74.30 891.60 

1,255.75 15,069.00 157.00 1,884.00 1,275.75 15,309.00 157.00 1,884.00 

Single 

743.40 8,920.80 753.40 9,040.80 0 0 

coverage, lay 

Family 

1,569.75 18,837.00 1,589.75 19,077.00 0 0 

coverage, lay 

*Conference subsidy is available for clergy appointed ¾-time or fulltime 

Clergy appointed ¾ to full time 

Family—ACH 

(Annual Amounts) 2013 MAC Plan Rates 2012 MAC Plan Rates 

Total Premium 18,837 18,837 

Church Portion 15,069 15,069 

Clergy Portion 1,884 1,884 

Conference Portion 1,884 1,884 

Non-ACH—Church Portion 15,309 15,309 

Single—ACH 

Total Premium 8,920.80 8,920.80 

Church Portion 7,137.60 7,137.60 

Clergy Portion 891.60 891.60 

Conference Portion 891.60 891.60 

Non-ACH—Church Portion 7,257.60 7,257.60 

Lay employee or less than ¾ time 

appointment 

Family—ACH 18,837 18,837 

Single—ACH 8,920.80 8,920.80

Church _______________________ City __________________________ Form 5 

Clergy Name: 

Pastoral Compensation 

Return to district superintendent’s office by December 1, 2012 

_____________________________________________________ Years of Service: ___________ 

Appointment increment (1, .75, .5 or .25)→ 

Eff. Date: 

1a. Enter pastor’s salary (see 2013 Minimum Compensation Schedule) 1a 

1b. Parsonage Penalty Adjustment - If parsonage is provided, see footnote for amount to enter here.** 1b 

1c. Salary Reductions (additional enrollment forms required; see instructions) 

(1) Before-tax contribution to the Personal Investment Plan (UMPIP), a 403(b) 

retirement plan 

(2) Other 403(b) before-tax retirement plan contribution (not UMPIP) 

(3) Furnishing/Appurtenance Allowance (IRC 107) – Form 8a or 8b required 

(4) Clergy share of MAC premium (10%)—mandatory 

(5) Medical reimbursement (IRC 125) Maximum $2,500 beginning 1/1/2013 

(6) Dependent care reimbursement (IRC 125) 

Total Salary Reductions 

NET SALARY (1a + 1b + 3a - 1c) Equals the amount in Box 1 of the W-2 1 

2. Housing Allowance in lieu of parsonage (IRC 107) – Form 8b required 2 

3. Health Insurance (MAC Plan only) local church share.* Enter: 1=Single, 2=Family, 0=none→ 

3a. Other non-MAC Plan health insurance contribution (taxable). "X" here and enter amount→ 3a 

4. Pension and Death & Disability coverage calculation: parsonage provided (Formula I) or housing allowance (Formula II) 

Parsonage Provided (FORMULA I) 

Pension (CRSP) 

Pastor’s Salary (1a+ 1b) x 1.25 x .12 = CRSP 

(If pastor’s salary x 1.25 exceeds DAC [$63,867], use $7,664.04) 

Disability (CPP) - Fulltime Appointment 

Pastor’s Salary (1a+1b) x 1.25 x 4.4% = CPP 

(If pastor’s salary x 1.25 exceeds 2 x DAC [$127,734], use $5,620.30) 

Disability (CPP) - Less Than Fulltime Appointment for (FE, PM, PE, AM, FD, PD) 

Enter $2,171.48 for 3/4 time (participation mandatory); 

Enter $2,810.15 for 1/2 time (participation optional) 

Disability (UNUM) - 3/4 time Local Pastors (LP) and Clergy from other denominations (OF) 

Contact Benefits Officer at jean.edin@minnesotaumc.org for estimated premium 

FORMULA I TOTAL 

Housing Allowance (FORMULA II) 

Pension (CRSP) 

Pastor’s Salary (1a) + housing allowance x .12 = CRSP 

(If pastor’s salary + housing exceeds DAC [$63,867], use $7,664.04) 

Disability (CPP) - Fulltime Appointment 

Pastor’s Salary (1a) + housing allowance x 4.4% = CPP 

(If pastor’s salary + housing exceeds 2 x DAC [$127,734], use $5,620.30) 

Disability (CPP) - Less Than Fulltime Appointment for (FE, PM, PE, AM, FD, PD) 

Enter $2,171.48 for 3/4 time (participation mandatory); 

Enter $2,810.15 for 1/2 time (participation optional) 

Disability (UNUM) - 3/4 time Local Pastors (LP) and Clergy from other denominations (OF) 

Contact Benefits Officer at jean.edin@minnesotaumc.org for estimated premium 

FORMULA II TOTAL 

5. Total Compensation for this Position: Total of 1a, 1b, 2, 3, and 4. 

(This figure is used for budgeting purposes by the local church. It is not the amount that goes on 

the W-2, nor is it income for tax purposes.) 

* Please use 2013 MAC Plan Premiums for specific dollar amounts, found on the previous page of this packet. 

** If appointment is fulltime, enter $274.10 in line 1b; 3/4 time = $205.57; 1/2 time = $137.05; 1/4 time = $68.52 

1c 

4(I) 

4(II) 

5

Church ________________________ City______________________________ Form 6 

Reimbursable Items and Parsonage Utilities Budget 

Forms 5, 6, and 7 are due in the district office within one week after your church conference, or no later than 

December 1, 2012. 

Clergy Name: _________________________________________________________________________ 

Items previously included on the Pastoral Support Form as part of the ‘Total Budget for this Position’ included 

reimbursable items (travel, continuing education, and other professional expenses). These are not items of 

compensation if they are reimbursed under an accountable reimbursement plan. All churches are encouraged to 

establish accountable reimbursement plans. For assistance with budgeting and planning, we have listed 

reimbursable items and parsonage utilities here. (Please note also that the Table II Financial Report to the 

Annual Conference does include reimbursable items in the section “Pastoral Support—Local Church.”) For 

information on accountable reimbursement policy, visit www.gcfa.org. 

Reimbursable Items Budget 

6. Continuing Education 

7. Travel 

Item Parameters Amount 

$800 minimum, $1,491.15 

recommended (2.5% of CAC) 

IRS rate for 2012 is 55.5¢ per mile. Churches shall not 

pay less than the current IRS rate. Churches will be 

notified through the e-mail list if the IRS rate changes. 

6 $ 

7 $ 

8. Other professional expenses $500 minimum 8 $ 

9. Total budgeted for Reimbursable items Sum of 6, 7, and 8 9 $ 

10. Total budgeted for parsonage utilities (Include here parsonage utilities paid by 

church. This does not refer to the housing allowance. 

11. Total amount to budget for Pastoral Compensation, 

Accountable Reimbursable Items, and Parsonage Utilities 

10 $ 

Sum of 5, 9, and 10 11 $

Church ________________________ City______________________________ Form 7 

Multiple Church Compensation & Other Expense Breakdown 

Clergy Name: ________________________________________________________________________________ 

Please enter the percentage and dollar amount each church pays. 

Item Church % Church % Church % 

Gross Compensation 

(See Form 5 Line 1a 

plus 1b) 

Housing or Utilities 

(See Form 5 Line 2 or 

Form 6 Line 10) 

*Health Insurance 

(See Form 5 Line 3) 

*Pension (See Form 5 

Line 4) 

Continuing Education 

(See Form 6 Line 6) 

Travel (See Form 6 


Other Professional 

Expenses (See Form 6 


TOTALS (from Pastoral 

Compensation Form 

[Form 5] and Accountable 

Reimbursement Form 

[Form 6]) 

TOTAL 

*Billing for benefits in multi-church charges can be challenging. The simplest billing procedure is for one church 

to be billed for all benefits with reimbursement from the other churches in the charge. When more than one 

church is to be billed the pension portion can only be divided by whole percentages (i.e. 50%, 35%, not 22.5%). 

If the Health Insurance premium is billed to more than one church it is preferred that only one church be 

responsible for the salary reduction of the clergy’s share of premium for accurate reporting on the W-2 and 

collection of premium. Special billing arrangements become a challenge and increase the possibility for error. 

Note: Special billing arrangements must be communicated in writing to the Conference Benefits Officer with the 

specific information for billing, each church treasurer’s name, contact information and the payment method 

(direct billed or ACH) for each church.

Church ________________________ City______________________________ Form 8a 

2013 Parsonage Allowance Resolution 

(Church-Owned Parsonage) 

The approved document should be kept with the minutes of the meeting at the local church. 

Copies should be given to the pastor and church treasurer for tax and payroll purposes. 

Date ____________________________ 

TO: Church Council/Leadership Team 

I hereby request that, of my 2013 compensation in the amount of $____________, the Council/Board designate 

$___________ as a household furnishings/appurtenance allowance. I have reviewed my estimated expenses 

related to 2013 and believe this to be a representative amount pursuant to Section 107 of the IRS code. 

For the year 2013, I will receive the rent-free use of a home located at __________________________________ 

___________________________________________________________________________________________ 

Respectfully submitted, 

Name _________________________________ Position _____________________________________________ 

Address ____________________________________________________________________________________ 

* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * 

The following resolution was duly adopted by the church council/administrative board of ______________ 

Church, after considering the statement of Pastor _____________________________ regarding the house 

occupied, furnished, plus the cost of utilities, at a regularly scheduled meeting on ___________________, a 

quorum as defined in the 2008 BOD (252.6) being present: 

Whereas, section 107 of the Internal Revenue Code permits a minister of the gospel to exclude from gross 

income “the rental value of a home furnished to him as part of his compensation,” and a churchdesignated 

parsonage allowance paid to him as part of his compensation to the extent used by him for 

actual expenses incurred in maintaining a church-owned parsonage; and 

Whereas, Pastor _________________________ is compensated by ________________________ Church 

exclusively for services as a minister of the gospel; and 

Whereas, ___________________________________ Church provides Pastor._____________________ with 

rent-free use of a church-owned parsonage as compensation for services that he/she renders to the 

church in the exercise of his/her ministry; and 

Whereas, as additional compensation to Pastor ____________________________ for services that he/she 

renders to the church in the exercise of his/her ministry, _______________________ Church also 

desires to pay Pastor _________________ for expenses that he/she incurs in maintaining the 

parsonage; therefore, it is hereby 

Resolved, that the annual compensation paid to Pastor ____________________________ for the calendar year 

2013 shall be $ _____________________, of which $__________ is hereby designated as a household 

furnishings or rental or parsonage allowance pursuant to Section 107 of the Internal Revenue Code; and 

it is further

Church ________________________ City______________________________ Form 8a 

Resolved, that the designation of $__________ as a household furnishings or rental or parsonage allowance 

shall apply to the calendar year 2013, and to all future years unless otherwise provided by this 

Council/Board; and it is further 

Resolved, that Pastor __________________________ shall also have the rent-free use of the Church-owned 

house located at ___________________________________ for the year 2013 and that no rent or other 

fee shall be payable by Pastor _________________________for such occupancy and use. 

The parsonage or rental or housing allowance shall be so designated in the official church records. 

Approved: Church Council/Leadership Team 

___________________________________________________ _______________________________________ 

Secretary 

Date

Church ________________________ City___________________________ 

Form 8b 

2013 Housing Allowance Resolution 

(Clergy Owns or Rents Home) 

The approved document should be kept with the minutes of the meeting at the local church. 

Copies should be given to the pastor and church treasurer for tax and payroll purposes. 

DATE ___________________________ 

TO: Church Council/Leadership Team 

I hereby request that, of my 2013compensation in the amount of $__________, the Council/Board designate 

$___________ as a household furnishings/appurtenance allowance. I also request that $__________ be 

designated as a housing allowance. I have reviewed my estimated expenses related to 2013 and believe this to 

be a representative amount pursuant to Section 107 of the IRS code. 

Respectfully submitted, 

Name _________________________________ Position _____________________________________________ 

Address ____________________________________________________________________________________ 

* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * 

The following resolution was duly adopted by the church council/administrative board of ______________ 

Church at a (insert ‘regularly scheduled’ or ‘specially scheduled’) meeting on ___________________, a quorum 

as defined in the 2008 BOD (252.6) being present: 

Whereas, section 107 of the Internal Revenue Code permits a minister of the gospel to exclude from gross 

income (in computing federal income taxes) “a church-designated allowance paid to him as part of his 

compensation to the extent used by him for actual expenses in owning or renting a home;” and 

Whereas, Pastor _________________________ is duly compensated by _________________Church exclusively 

for services as a minister of the gospel; and 

Whereas, __________________________ Church does not provide Pastor _____________________ with a 

church-owned parsonage as compensation for services that he/she renders to the church in the exercise 

of his/her ministry; therefore, it is hereby 

Resolved, that Pastor ____________________________, who will receive compensation of $___________ for 

the year 2013, shall have $ _____________________ of that compensation hereby designated as a 

housing allowance and furnishings/appurtenance allowance pursuant to Section 107 of the Internal 

Revenue Code; and it is further 

Resolved, that the designation of $______________ as a housing/furnishing/appurtenance allowance shall apply 

to the calendar year 2013, and to all future years unless otherwise provided by this Council/Board. 

The parsonage or rental or housing allowance shall be so designated in the official conference records. 

Approved: Church Council/Leadership Team 

___________________________________________________ _______________________________________ 

Secretary 

Date

Forms 5, 6, 7, 8a, and 8b (Clergy Compensation) in PDF Format

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