Employment and Payroll

Guide to Writing Employment Contracts
Employment contracts are important in order to define the employment relationship, define expectations, and outline compensation package, performance expectations, and termination process. This guide provides a list of things which should be considered and included.

Guide to Pastor’s Payroll
Calculating the pastor’s payroll is likely one of the most difficult tasks for the novice church treasurer. This guide provides helpful information regarding withholding deductions and the basis for calculations.

Guide to the Clergy Residence Deduction
A member of the clergy is allowed a deduction on their income tax for the fair rental value of their accommodation. This guide outlines the two tests which must be met to qualify and the mechanics of claiming the Clergy Residence Deduction. Also available is a flowchart to assist with determining the amount that the pastor is eligible to claim.

NEW CRA Requirement for Reducing Tax Deductions at Source for Clergy
The attached article was written by the Canadian Council of Christian Charities.

Sample T4’s
Click here to review a sample of a T4 for a pastor who provides his/her own accommodation.

Click here to review a sample of a T4 for a pastor who lives in church provided accommodation.

Guide to Reimbursement of Travel Expenses
There are a number of ways in which travel allowance can be paid. Each affects differently what is claimed on the pastor’s personal income tax return. The CBOQ recommends reimbursement based on actual expense.

Guide to Providing Gifts to Pastors and Other Employees
Cash gifts or awards may be considered a taxable benefit when provided to employees. This guide provides helpful information on what types of gifts are allowed and whether or not they will be considered to be a taxable benefit.

Guide Regarding Pastor’s Resignation and Completion of the Record of Employment
Recognizing that it is usually more appropriate for a pastor to resign rather than be fired, this guide provides helpful information with regard to completion of the Record of Employment to ensure that the case is adjudicated appropriately and that he/she will be eligible to claim EI benefits based on the circumstances surrounding the resignation.

Guide to Providing Severance Settlements
In some situations it may be necessary or appropriate to negotiate severance with a pastor. This is a set of guidelines recognizing that every situation is different. The CBOQ recommends that a church seek legal advice prior to the situation becoming a difficult one.

Recommended Salary Guidelines
These Guidelines are recommended and written by the Ministerial Resources Committee.

Employers and Social Insurance Numbers, What you need to know
This article was written by Human Resources Development Canada.