2015 Support Worksheet/Report Form
Instructions and Index
PLEASE NOTE: The compensation package must be approved at the Charge/Church Conference. The clergy
is responsible to see that the completed and SIGNED 2015 Support Worksheet and Report Form is sent or
delivered to the District Superintendent’s office for review NO LATER THAN (ten) 10 days prior to the scheduled
Charge/Church Conference. If the form is not submitted by the deadline, the presiding elder, in consultation with
the DS, is responsible for the rescheduling of the Conference.
Background
The Support Worksheet & Report Form is used by many. Churches/Charges use it to project the cost of clergy
support for the coming year. Clergy use it for tax planning. The Conference Finance Office uses it to calculate
the Clergy Retirement Security Program (CRSP), the church-funded United Methodist Investment Plan
(UMPIP) and Comprehensive Protection Plan (CPP) billing amounts based on the total compensation package
plus housing allowance or parsonage. The Cabinet uses it during the appointment-making process. It is
important that the information is accurate. Please consult a tax professional for specific help with income tax
questions as this form is not intended to offer more than general information. Call your District Office if you
have any questions!
Capital/Coulee: 608.837.0056
Chippewa/Heartland: 715.835.5181
Metro Region: 414.271.5080
Nicolet/Winnebago: 920.991.0548
This form needs to be completed for the following positions:
• lay supply
• deacons
• retired clergy supply
• full-time or less than full-time clergy
• diaconal ministers
• clergy from other denominations
• licensed local pastors
Line 1: Start here.
This is the starting number for establishing clergy compensation. For tax planning purposes, clergy persons
may elect to have a portion of this figure EXCLUDED from taxable income in the following categories:
- salary reduction contributions to IRS Code Section 125 Cafeteria Plan for medical expenses,
dependent care expenses, and health, term life and disability insurance premiums.
- before-tax contributions to General Board of Pension and Health Benefits United Methodist Personal
Investment Plan (UMPIP).
- before-tax contributions to a pension plan or tax-deferred annuity other than UMPIP.
- household furnishings exclusion.
- clergy’s portion of health insurance premiums.
Amounts excluded for the above purposes are not reported on the pastor’s IRS Form W-2 as taxable income
but are included in the figure on line 1 of this form. You may start with the line 1 total, or you may use the
“Worksheet for line 1” to build the line 1 total.
Some clergy may also elect to have a portion of the figure on line 1 DEDUCTED from the clergy’s paycheck for
the following purposes:
- clergy’s after-tax contributions to a pension plan/tax-deferred annuity other than UMPIP.
- withholding for federal/state income tax/FICA.
- clergy’s after-tax contributions to United Methodist Personal Investment Plan (UMPIP).
Amounts deducted for the above purposes are reported on the clergy’s IRS Form W-2 and are included in the
figure on line 1 of this form.
Lines 2-6: Benefits that churches are required to pay include the church’s portion of clergy health insurance
premiums and all clergy pension contributions (CRSP) and death/disability insurance premiums (CPP) or
church-funded (UMPIP). Some churches provide additional benefits over and above the ones required. These
are itemized on lines 2 through 6 and are amounts in addition to what is reported on line 1. See the separate
table of “2015 Health Insurance Premiums” insert for premium amounts. Group health insurance premiums
paid by the charge as a benefit are not taxable and should not be reported on IRS Form W-2.
1
Lines 7: Report any housing allowance paid by the charge instead of providing a parsonage.
Lines 8: Estimated utilities paid by the charge for a parsonage.
Lines 9-16: These lines are not used.
Lines 17-19: Use the included Pension Calculation Worksheets to calculate these amounts.
Lines 20-23: Enter the estimated (budgeted) amounts available to the clergy in exchange for a receipt or
voucher. If vouchered expenses are not itemized, use line 20 for the total amount budgeted for all categories
(professional expenses, books and publications, travel and continuing education).
Lines 24-25: If the churches are receiving Equitable Compensation or Missional Support from the Conference,
enter the total amount anticipated to be received.
Line 26: Used to calculate total compensation package.
Lines 27-35: Used to allocate clergy support expenses for multiple-point charges.
2
2015 Support Worksheet & Report Form
THIS FORM IS DUE 10 DAYS PRIOR TO YOUR CHARGE/CHURCH CONFERENCE
Charge/Church ____________________________________ Clergy _____________________________________
Salary
2014
1. The annual amount of cash salary paid to the clergy (total of lines a - i below).
Include in line 1 total: base cash salary (even if partially provided by equitable
compensation or missional support); any payments made directly to the clergy in
anticipation of expenses for which the clergy person is not required to provide a receipt
or voucher; i.e., all “allowances” except the housing allowance.
___________
2015
1. __________
Do not include in line 1 total: any items described on lines 2-8 if paid by the charge
in addition to the cash salary reported on line 1.
Worksheet for line 1 (add lines a - i to get line 1):
Of the total indicated on line 1, how much will be take home pay (do not
include any of the amounts on lines b through i below)?
a. ________
Of the total indicated on line 1, how much will be excluded from taxable
income (not reported as taxable income on IRS Form W-2):
b. ________ salary reduction contributions made to an IRS Code
Section 125 Cafeteria Plan for medical care expenses, dependent
care expenses, term life insurance premiums and disability
insurance premiums.
c. ________ before-tax clergy-paid contributions to United Methodist
Personal Investment Plan (UMPIP).
d. ________ before-tax clergy-paid contributions to a pension
plan/tax-deferred annuity other than UMPIP.
e. ________ furnishings exclusion (see definition). Amounts
designated as furnishings exclusion are included on paychecks;
however, do not include this amount in line a above.
f. ________ clergy portion of health insurance.
Of the total indicated on line 1, how much will be deducted from the
clergy person’s paychecks but still reported on IRS Form W-2 as salary:
g. _______ after-tax clergy-paid contributions to United Methodist
Personal Investment Plan (UMPIP).
h. _______ after-tax clergy contributions to a pension plan/taxdeferred annuity other than UMPIP.
i. _______ withholding for clergy-paid federal/state income tax/FICA.
Other Benefits
2. The clergy portion of health insurance premiums paid by the charge as additional
compensation.
____________ 2. __________
3. The charge portion of the clergy health insurance premiums.
____________ 3. __________
4. Bills or invoices paid directly by the charge for the clergy’s professional
expenses. For example: Annual Conference expenses. Do not include accountable
reimbursements reported on lines 20-23.
____________ 4. __________
5. Clergy person’s income/FICA taxes paid by the charge, paid as additional
compensation and not already included in the amount reported on line 1.
____________ 5. __________
6. Bills, invoices or reimbursements paid by the charge for the clergy person’s
personal expenses. For example: health club membership, medical care expenses or
dependent care expenses, cable TV or satellite hook-up, and internet services.
____________ 6. __________
3
Housing
2014
7. Housing allowance. (This line is used only if the clergy person receives a housing
allowance.)
8. Utilities paid by the charge for a PARSONAGE. Include: local phone services,
electric, gas, oil, water, trash pickup, and sewer. Do not include: property insurance,
repairs, maintenance, or parsonage improvements.
2015
___________ 7. __________
__________
8. _________
Pension Benefits
Lines 9-16 are no longer being used in this worksheet/report form.
Only churches served by a half or quarter-time clergy may make employer contributions to the United Methodist
Personal Pension Plan (UMPIP). Personal contributions to 403(b) plans such as UMPIP can only be funded by payroll
deduction. Other churches that would like to further financially support their clergy’s participation in UMPIP can do so by
increasing the clergy’s cash salary (line 1).
NOTE: If making any changes to UMPIP, the clergy person must contact the Conference Benefits Officer.
17a Clergy Retirement Security Program (CRSP) from worksheet □ 1 or □ 2 (see
flowchart) FOR FULL AND THREE-QUARTER TIME CLERGY.
17b UMPIP from worksheet □ 3 or □ 4 (see flowchart) FOR HALF AND QUARTER
TIME CLERGY.
__________
__________
17a _________
17b _________
18. Comprehensive Protection Plan (CPP) from worksheet □ 1 □ 2 □ 3 or □ 4 (see
flowchart)
__________
18. _________
19. Other local church pension from worksheet □ 5 (see flowchart)
__________
19. _________
Accountable Reimbursements
20. Professional expenses, other than those explicitly listed below, reimbursed to the
clergy person in exchange for a receipt or voucher.
__________
20. _________
21. Book and publication expenses reimbursed to the clergy person in exchange for a
receipt or voucher.
__________
21. _________
22. Travel expenses reimbursed to the clergy person in exchange for a receipt or
voucher.
___________
22. _________
___________
23. _________
Travel related to clergy’s professional responsibilities is to be reimbursed at actual
expenses or IRS rates. If the clergy person is reimbursed at “per mile” rates that exceed
IRS rates then the difference should be entered as part of salary (line 1).
23. Education expenses reimbursed to the clergy person in exchange for a receipt or
voucher. Passed by the 2009 Annual Conference: The minimum continuing education
allowance for every clergy person under appointment to a local church or the
conference staff shall be 2% of the minimum salary for ordained clergy persons in full
connection in any given year, rounded up to the next $100. Minimum salary to be used
in this computation for 2015 is $38,548.
4
2014
2015
24. The total annual amount of Equitable Compensation provided by the annual
conference as compensation to clergy.
__________
24.__________
25. The total annual amount of Missional Support received as compensation to clergy
__________
25_________
__________
26_________
Equitable Compensation/Missional Support
Total Compensation
26. Total compensation package:
(add lines 1, 2, 5, 6)
Multiple Point Charge Breakdown
27. Church name
_____________
_____________
_____________
_____________
28. Equitable Compensation support
_____________
_____________
_____________
_____________
29. Missional Support
_____________
_____________
_____________
_____________
30. Percent allocated to churches
_____________
_____________
_____________
_____________
31. Salary (from line 1)
_____________
_____________
_____________
_____________
32. Other Benefits (add lines 2-6 )
_____________
_____________
_____________
_____________
33. Housing (add lines 7 & 8)
_____________
_____________
_____________
_____________
34. Pension (from lines 17-19)
_____________
_____________
_____________
_____________
35. Accountable Reimbursements
(add lines 20-23)
_____________
_____________
_____________
_____________
COMPLETED BY: ____________________________________________
DATE: ____________
CLERGY SIGNATURE: ________________________________________
DATE: ____________
SPRC CHAIR SIGNATURE: ___________________________________
DATE: ____________
PLEASE NOTE: The compensation package must be approved at the Charge/Church Conference.
The clergy person is responsible to see that the completed and SIGNED 2015 Support Worksheet and
Report Form is sent or delivered to the District Superintendent’s office for review NO LATER THAN
(ten) 10 days prior to the scheduled Charge/Church Conference. If the form is not submitted by the
deadline, the presiding elder, in consultation with the DS, is responsible for the rescheduling of the
Conference.
5
Pension Calculation Worksheets – 2015 FOR THOSE SERVING FULL OR 75% TIME
Pension worksheet 1
Pension worksheet 2
FOR THOSE SERVING FULL OR 75% TIME,
PARSONAGE PROVIDED
FOR THOSE SERVING FULL OR 75% TIME, NO
PARSONAGE PROVIDED
Calculation of “compensation for pension purposes”
amount from line 1:
____________
amount from line 2:
____________
amount from line 5:
____________
amount from line 6:
____________
Calculation of “compensation for pension purposes”
amount from line 1:
____________
amount from line 2:
____________
amount from line 5:
____________
amount from line 6:
____________
amount from line 7:
____________
A. Total of the above amounts: ____________
A. Total of the above amounts: ____________
Multiply line A by 1.25
x
B. Result:
CRSP calculation:
Multiply line B by .124
C. Result: carry to line 17a
1.25
____________
x
CRSP calculation:
Multiply line A by .124
x
B. Result: carry to line 17a
_____________
.124
.124
____________
If you are less than full-time and are a local
pastor, or a member of another
denomination, or a member of another
Methodist denomination, you are done with
this worksheet.
If you are less than full-time and are a local
pastor, or a member of another
denomination, or a member of another
Methodist denomination, you are done with
this worksheet.
CPP calculation:
Is line B less than $36,885 -or- is the appointment less
than full time?
If yes, enter $2,253 on line 18
and you are done with this worksheet.
CPP calculation:
Is line A less than $36,885 -or- is the appointment
less than full time?
If yes, enter $2,253 on line 18
and you are done with this worksheet.
If no, multiply line B by .03
x
.03
D. Enter the amount calculated
or $3,976, whichever is less: ______________
Carry the result on line D to line 18 and you are done
with this worksheet.
If no, multiply line A by .03
x
.03
C. Enter the amount calculated
or $3,976, whichever is less: ____________
Carry the result on line C to line 18
and you are done with this worksheet.
6
Pension Calculation Worksheets – 2015 FOR THOSE SERVING 50% OR 25% TIME
Pension worksheet 3
Pension worksheet 4
FOR THOSE SERVING 50% OR 25% TIME,
PARSONAGE PROVIDED.
FOR THOSE SERVING 50% OR 25% TIME,
NO PARSONAGE PROVIDED.
Calculation of “compensation for pension purposes”
amount from line 1:
____________
amount from line 2:
____________
amount from line 5:
____________
amount from line 6:
____________
Calculation of “compensation for pension purposes”
amount from line 1:
____________
amount from line 2:
____________
amount from line 5:
____________
amount from line 6:
____________
amount from line 7:
____________
A. Total of the above amounts: ____________
A. Total of the above amounts: ____________
Multiply line A by 1.25
x
B. Result:
1.25
UMPIP church contribution calculation:
Multiply line B by .06
x
C. Result: carry to line 17b
UMPIP church contribution calculation:
Multiply line A by .06
x
.06
____________
B. Result: carry to line 17b
_____________
.06
____________
If you are a local pastor, or a member of another
denomination, or a member of another
Methodist denomination, you are done with
this worksheet.
If you are a local pastor, or a member of another
denomination, or a member of another
Methodist denomination, you are done with
this worksheet.
CPP calculation:
Enter $2,253 on line 18 and you are done with this
worksheet.
CPP calculation:
Enter $2,253 on line 18 and you are done with this
worksheet.
Pension worksheet 5
If your church is providing pension other than through the Clergy Retirement Security Program (CRSP) or the United
Methodist Investment Plan (UMPIP) for you, put the amount on line E below:
E. Amount
____________
Carry the amount on line E to line 19 and you are done with this worksheet.
16 JULY 2014 revision
Print Form
7
Index
The purpose of this index is to help you determine where to enter the various compensation amounts
that make up clergy compensation. If you cannot find the word or phase for which you are looking,
please call your District Office if you have any questions!
Capital/Coulee: 608.837.0056
Metro Region: 414.271.5080
Chippewa/Heartland: 715.835.5181
Nicolet/Winnebago: 920.991.0548
Accountable Reimbursements. Business expenses reimbursed to clergy in exchange for a receipt or
voucher pursuant to an Accountable Reimbursement plan. If the church pays any amounts in excess of the
substantiated expenses and the excess is not returned to the church, then this excess amount is considered
taxable income to the clergy. Also, any reimbursement made to clergy for personal expenses is considered
taxable income to the clergy. There are four different Accountable Reimbursement categories on this form:
book and publication expenses on line 21, travel expenses on line 22, education expenses on line 23 (the 2009
Annual Conference approved a minimum $800 amount for clergy continuing education), and all other
accountable reimbursement expenses on line 20.
Allowances/Exclusions. There are two kinds of allowances/exclusions paid to clergy that are considered
non-taxable for reporting on the clergy person’s IRS Form W-2: the housing allowance (line 7) and the
furnishings exclusion (line 1e). All other allowances are considered taxable income and are included in the total
on line 1. “Other allowances” are cash paid to a clergy person in anticipation of 1) professional expenses for
which the clergy is not required to provide a receipt or voucher, or 2) personal expenses; e.g., allowances for
out-of-pocket medical expenses.
Annual Conference Expenses. If the charge pays for a clergy’s substantiated Annual Conference expenses,
those payments are reported on line 4 if paid directly or on line 20 if paid under an Accountable
Reimbursement plan. However, if the charge pays money directly to the clergy person in anticipation of Annual
Conference expenses, and the clergy person is not required to substantiate these expenses, then the
payments are considered to be a taxable allowance, which is included in the total on line 1.
Automobile Expenses. See “Travel Expenses.”
Cafeteria Plan. See “IRS Code Section 125 Cafeteria Plan.”
Clergy Retirement Security Program (CRSP). This is the employer pension plan administered by the
General Board of Pension and Health Benefits, which provides benefits only for three-quarter and full-time
clergy service, beginning with January 2014.
Comprehensive Protection Plan (CPP). This is the death and disability insurance plan for clergy that is
administered by the General Board of Pension and Health Benefits.
Dependent Care Reimbursement Account. See “IRS Code Section 125 Cafeteria Plan.”
Dues. If dues are reimbursed to a clergy person in exchange for a receipt or voucher, they are reported on
line 20 as an Accountable Reimbursement. If dues are paid directly by the charge, they are reported on line 4.
If cash is paid directly to the clergy person in anticipation of dues and the clergy is not required to substantiate
these expenses, they are considered taxable income and are included in the total on line 1.
Education Expenses. If education expenses are reimbursed to the clergy person in exchange for a receipt or
voucher, they are reported on line 23 as an Accountable Reimbursement. If education expenses are paid
directly by the charge, they are reported on line 4. Educational expenses include tuition, books, supplies,
correspondence courses, and certain travel expenses. If cash is paid directly to the clergy person in
anticipation of education expenses and the clergy is not required to substantiate these expenses, they are
considered to be taxable income and should be included in the total on line 1.
8
Equitable Compensation. The annual amount of Equitable Compensation Support provided by the
Conference to the church for compensation support for the clergy (line 24).
FlexPlan. See “IRS Code Section 125 Cafeteria Plan.”
Furnishings Exclusion. The exclusion (for federal and state income tax purposes) of a portion of the clergy’s
compensation that a church designates in advance as a “parsonage allowance” pursuant to IRS Code Section
107. This is the amount that the clergy person estimates he/she will personally pay for expenses related to
maintaining the parsonage. This can include expenses for furnishings and appliances, utilities, structural
repairs and remodeling, yard maintenance and improvements, maintenance items (household cleansers, light
bulbs, pest control, etc.), and insurance. Amounts designated as “Furnishings Exclusion” are included on
paychecks.
Health Club Membership. Health club membership fees paid directly by the church for the clergy person are
considered taxable income and are included on line 6.
HealthFlex. This is the group health benefit plan administered by the General Board of Pension and Health
Benefits in which the Wisconsin Annual Conference participates. It also includes an IRS Code Section 125
Cafeteria Plan. See also “IRS Code Section 125 Cafeteria Plan.”
Health Insurance. Health insurance premiums are divided into the charge portion and the clergy portion. The
charge portion is entered on line 3. The clergy portion is either: (1) entered on line 2 if the church pays it as
additional compensation to the clergy person, or (2) included as part of the total on line 1 if it is deducted from
the clergy person’s salary. See “IRS Code Section 125 Cafeteria Plan.” Health insurance premiums paid by the
church, whether as additional compensation or through payroll deduction, are not taxable.
Income/FICA/SECA Taxes. There are three possible scenarios involving income/FICA/SECA (selfemployment) taxes. (1) The clergy person can ask the church to withhold income/FICA taxes from his/her
salary. The church then remits the withheld amount to the Internal Revenue Service and/or the Wisconsin
Department of Revenue. These amounts are included in line 1i. (2) The clergy person can elect to make
estimated tax payments directly to the Internal Revenue Service and the Wisconsin Department of Revenue.
These amounts are not entered on this form. (3) The church may elect to pay the clergy an amount equal to
the clergy person’s taxes as additional compensation. These amounts are reported on line 5.
IRS Code Section 125 Cafeteria Plan. This is a benefit plan through which clergy can elect to pay for certain
medical, dependent care, and insurance premiums on a before-tax basis. Clergy persons are generally
enrolled in the HealthFlex Cafeteria Plan. If enrolled in HealthFlex, clergy can elect a Medical Reimbursement
Account and/or a Dependent Care Reimbursement Account. Amounts elected pursuant to an IRS Code
Section 125 Cafeteria Plan are deducted from the clergy’s cash compensation and are not included as taxable
wages on the IRS Form W-2. These amounts are included on the total in line 1b and 1f. If the church pays a
clergy’s medical or dependent care expenses either directly to a health provider or to a clergy person as a
“reimbursement,” those amounts are included on line 6 of this form and are included as taxable wages on the
IRS Form W-2.
Medical Reimbursement Account. See “IRS Code Section 125 Cafeteria Plan.”
Membership Fees. If membership fees for professional organizations are reimbursed to the clergy person in
exchange for a receipt or voucher, they are considered Accountable Reimbursement expenses and are
reported on line 20. If membership fees for professional organizations are paid directly by the charge, they are
reported on line 4. If the charge pays money directly to the clergy for membership fees and the clergy is not
required to provide substantiation, payments are considered to be taxable income and are included in the
amount on line 1.
Parsonage Allowance. See “Furnishings Exclusion.”
9
Professional Expenses. Professional expenses may include books and periodicals, purchase and cleaning of
robes and clerical garb, professional entertaining, purchase of equipment to be used professionally, etc. and
can be reported either on line 4 (if church pays the actual bill or invoice) or on lines 20-23 (if vouchered and
paid to clergy person). If cash is paid directly to the clergy in anticipation of professional expenses for which a
receipt or voucher is not required, then the money paid is considered ordinary taxable income and is to be
included in the total on line 1.
Travel Expenses. Generally this includes substantiated automobile expenses paid as follows: 1) Multiply the
miles driven for business purposes by the standard mileage rate as set by the Internal Revenue Service, plus
parking fees, or 2) Actual expenses of operating an automobile including gas, oil, tires, repairs, tune-ups,
batteries, washes, insurance, interest on a car loan, taxes, parking fees, etc. These amounts are listed on line
22. This could also include expenses while traveling away from home on business such as air, rail or bus fares,
meals and lodging while away from home, taxi fares, etc. If cash is paid directly to the clergy person in
anticipation of travel expenses for which a receipt or voucher is not required, then the money paid is
considered ordinary taxable income and is included in the total on line 1.
United Methodist Personal Investment Plan (UMPIP). This is the clergy person’s personal investment plan
administered by the General Board of Pension and Health Benefits. The Internal Revenue Code designates
this as a 403(b) plan. Each clergy decides whether or not to participate and how much to contribute. Note:
Under Internal Revenue Code 403(b), employers cannot make the pastor’s personal contribution to this
plan; it can only be funded by payroll deductions. Clergy are not required to participate in UMPIP but are
strongly encouraged to take advantage of this retirement tool. They will forfeit part of their church-paid
contributions if they don’t personally participate in UMPIP. Churches served by half-time and quarter-time
clergy make a separate church funded contribution to UMPIP. Note: Clergy are required to notify the
Conference Benefits Officer if they make any changes to their UMPIP.
United Methodist Personal Investment Plan (UMPIP) Personal Contributions. Contributions that are made
to the clergy person’s UMPIP account from payroll deductions. The following contributions can be made:
(1) Clergy person elects to make UMPIP contributions on a before-tax basis. These amounts are deducted
from the clergy’s cash salary, and they are not included on the IRS Form W-2 as taxable wages. These
amounts are included in the total on line 1c. (2) Clergy person elects to make UMPIP contributions on an
after-tax basis. These amounts are deducted from the clergy person’s cash salary and they are included on
the IRS Form W-2 as taxable wages. These amounts are included in the total on line 1g. Note: Clergy are
required to notify the Conference Benefits Officer if they make any changes to their UMPIP.
10