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Compensation and Benefits Committee
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Understanding First UU Compensation and Benefits Practices.
Employment status: either full time, half time, three-quarter or quarter-time, our
congregation has a mix of employment statuses within its paid staff. The UUA recommends that full-time religious
professionals work 12 units of service per week, a unit of service defined as one morning, afternoon, or evening
devoted to service for their employer-congregations. Twelve units per week is considered full-time, whether this
constitutes more or less than 40 hours per week All others work less than 12 units based on their employment status.
The UUA encourages staff not to work more than six units consecutively.
Taxes are inevitable; we all have to pay them. Like other employers, congregations are required to report the
earnings of their employees on W-2 forms to the Internal Revenue Service. The same applies to ministers, except
that congregations are exempt from the requirement of withholding income tax on ordained, licensed, or
commissioned clergy. Congregations are responsible for the timely withholding and payment of income and
social security taxes on all their non-ordained employees, and they can be penalized for non-compliance.
Ordained clergy ordinarily pay their own estimated income tax quarterly. Tax rates for ministers are
the same as other taxpayers.
By law,social security taxes are shared equally between employers and employees, with each party
responsible for 7.65 percent of the salary; this is true for all of a congregation's non-ordained
employees. Since ministers are considered self-employed for purposes of social security, clergy
pay their own estimated Self Employment tax (SECA). Currently, SECA is 15.3 percent of a minister's
salary and housing allowance. Realizing that clergy income is usually less than that of true
self-employed professionals, congregations pay their ministers what amounts to a bonus of 7.65 percent
of the salary and housing allowance in lieu of the employer's share of social security. These dollars
are also subject to both social security and income tax.
Benefits. Most employers today offer basic insurance, vacation, sick leave, and other benefits
for their regular full-time employees, and these are often pro-rated for persons who work half-time
but less than full-time. The law does not require that such benefits be offered, but it is often
in the best interest of the employer to pay benefits in order to retain skilled people and avoid turnover.
The UUA urges its member congregations to offer three insurance policies through the MetLife Insurance Company
as follows: The employee pays all policy premiums.
Group Dental Insurance coverage is available for employees of UU organizations who work at least half-time.
The policy provides preventive exams and partial payment for major dental work up to a maximum of $1,000
per person per year.
Group Term Life Insurance is available to persons employed by UU organizations. The face value is equal
to 200% of the employee's salary.
Long Term Disability Insurance provides income protection equal to 60 percent of salary after 90 days of
disability up to age 65. The monthly premium cost is 1.2 percent of the amount insured. Most congregations
cover the salary, housing allowance, and benefits of religious professionals for the first 90 days of
disability until LTD benefits begin. As such, this is our practice at First UU.
In terms of health insurance, the UUA offered medical insurance until the policies were canceled in
August 1998. Therefore, First UU does not currently have a health insurance plan. We provide a
stipend to eligible staff to contribute to their own purchased plan. In the next calendar year, it is
the goal of the C&B Committee to institute a health insurance plan for eligible staff.
Vacation and Other Leaves of Absence. The UUA urges congregations to provide one month of vacation
as a minimum for full-time religious professionals; this is pro-rated for persons who work less
than full-time. Ministers commonly receive an additional month of "on call" or study leave per
year, during which they are relieved from regular daily duties but are expected to respond to emergencies.
Additionally, the Minister is provided a sabbatical leave of one month for each full fiscal year
of service. The purpose of a sabbatical leave is to enable further growth and development of the
Minister through education and renewal. Sabbatical leaves may be taken after one full year
following the last sabbatical. Unused, earned sabbatical leave carries over each year up
to a maximum of six months.
COMMITTEE DESCRIPTION: COMPENSATION AND BENEFITS
GROUP: Business Affairs
CHARGE:
(a) To develop, coordinate, evaluate, and maintain personnel procedures, practices, and the conduct of personnel evaluations;
(b) To recommend employee compensation and benefit levels which consider the UUA guidelines, the local salary market, and the financial capabilities of the congregation;
(c) To work to become a Fair Compensation and Benefits Congregation as set out in the publication from the UUA called "To Sustain the Living Tradition";
(d) To serve as ombudsman for the staff.
RESPONSIBILITIES:
1) UUA Guidelines for Salaries and Benefits
(a) Maintain up-to-date information on the UUA Guidelines and on geographic data needed to relate the Guidelines to the Syracuse area.
(b) Ensure that the necessary information is available to assign each covered position to the appropriate salary range. Review salary ranges periodically.
(c) Review the census of active membership in the congregation once each year to ensure that the Society is classified appropriately using the appropriate UUA compensation guidelines for its size. within the Guidelines of the UUA.
(d) Make recommendations when necessary to the Board of Trustees , in coordination with through the Finance Committee, for modifications in our use of the Guidelines.
2) Performance Evaluation
(a) Review performance evaluation forms, including forms for self-evaluation, and modify these as necessary.
(b) Initiate the annual performance review process, consulting with applicable program committees as recommended in the congregation's Personnel Policies and Procedures.
(c) Establish a schedule for performance reviews.
(d) Arrange for one C & B committee member to interview each member of the staff, together with a member of the applicable committee, if any. Write the results on the evaluation forms.
(e) Review completed evaluation forms with the employee and his or her supervisor, or the President of the Board if the employee reports directly to the Board.
(f) File completed, signed evaluation forms in the personnel files.
(g) After evaluations are completed, make recommendations to the Board as needed for changes in the performance review process. Each employee and his or her committee, if any, shall be consulted about these recommendations.
3) Recommendations for the Budget
a) In late January or early February of each year, create draft recommendations for next year's salary and benefits, if any, for each member of the staff. The UUA Guidelines, local salary data, and recommendations from applicable committees shall be used in this process.
b) Modify recommendations for salary and benefits as needed after the annual canvass is completed and other sources of income are known for next year. Normally this information will be in place sometime each April.
4) Employment Contracts and Summaries of Terms and Conditions
[The Minister, the Director of Music, the Director of Religious Education, and the Congregational Administrator have annual employment contracts. The Youth Advisor/D.R.E. Assistant and the Church Secretary have documents that set out their terms and conditions of employment but are not formal contracts.]
a) Review each job description with the employee and revise the description, subject to approval by the Board of Trustees, if necessary. This review may be done together with the performance evaluation.
b) In April or May, revise this year's contracts and terms and conditions to set out terms and conditions for next year.
c) If necessary, meet with the employee to review the new document.
d) Have the employee sign the original and one copy of the new contract or terms and conditions. File the originals in the personnel files, and have the employee keep the copy.
e) Provide to the Secretary and the Treasurer all current payroll information. The Secretary transmits payroll information to our contracted payroll service.
5) Benefits
(a) Review health insurance and disability insurance carrier, benefits, and costs as necessary. Implement any necessary changes.
(b) Supervise the Society's implementation of, and contributions to, the UUA pension fund and any 403 (b) tax-sheltered annuities that are in effect.
(c) Make sure any changes are reported to the payroll service.
6) Staff Relations: Serve as ombudsman for staff members to facilitate communication and to provide a process for resolution of problems.
7) Personnel Files: Maintain personnel files for current and former staff members.
8) Annual Report: Submit an annual report to the Vice President of the Society for inclusion in the material for the annual meeting of members of the congregation, usually in mid-May.
MEMBERS: No fewer than three, of which one member will also be on the Finance Committee.
TERM OF OFFICE: Two years.
MEETING SCHEDULE: As required, usually one meeting per month, September through June.
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