UUA Office of Church Staff Finances
Guided by Unitarian Universalist values,
we equip congregations for excellence as employers
and their staff for financial competence and well-being. |
Compensation and Staffing News |
Editor's Note: A Lot Going On
Dear Readers,
There's a lot happening for our team right now. Sean and I (the Comp Team) are preparing for changes to the Fair Labor Standards Act salary exemption threshold; William, Ashley, and Mariyah (Insurance) are continuing to improve payment processes; and Gloria, Jackie, and Anna (Retirement), have been working on a restatement of the UU Org Retirement Plan, last updated in 2014. That's not nearly all we're up to, but it's enough for one newsletter!
Please let us know about changes to your staff and lay leadership all year long. For staff, this includes salary and hours changes, new home addresses, terminations, and retirements. Keep these links handy:
Faithfully, |
|
Jan Gartner, Compensation and Staffing Practices Manager |
Exempt Salary Threshold Change: Be Aware & Prepare!
The exempt salary threshold under the Fair Labor Standards Act (FLSA) will increase July 1 and again on January 1, 2025. Employees who earn less than the salary threshold must be treated as nonexempt and their hours must be recorded. (See below regarding the ministerial exception.) While legal challenges to the new regulations are likely, congregations would be wise to plan for these increases.
The minimum salary needed to qualify for an Executive, Administrative, or Professional exemption (collectively, the "white-collar" exemptions) will rise from $684/week ($35,568 year-round) to $844/week ($43,888/year) as of July 1. On January 1, that threshold will go up to $1,128/week ($58,656/year). The salary threshold is NOT prorated for employees who work fewer than 40 hours/week. Keep in mind that exempt employees must meet both the salary and duties tests.
Employees classified as exempt under the "ministerial exception" are not subject to the salary test so, when treating an employee as exempt, you need to be clear about which exemption applies. The ministerial exception is for employees considered to have “essential religious duties.” It used for ministers and might be appropriate for some program staff.
While most churches are not subject to the FLSA under enterprise coverage, most congregational staff are subject to individual coverage under the FLSA, given the broad interpretation of interstate commerce as well as many state laws.
We expect that there are quite a few congregational staff members classified as exempt under current criteria who will not meet the new threshold. We're here to help you with options and communications with your staff. We are in the process of updating our Worker Classification page to reflect these legal changes. (See button below.)
Questions most welcome. Contact Sean and Jan at Comp@uua.org. We'll keep you posted. |
Streamlining Insurance Processes
Transitioning All Employers to ACH Payments
Last year, we introduced an Automatic Clearing House (ACH) payment option so that you can pay your invoices directly through automatic debit. ACH payments offer several advantages over traditional paper checks: faster processing, reduced administrative costs, and enhanced security. By transitioning to ACH payments, we aim to make the payment process easier, both for congregations and for our organization. This has proved to be a very popular option, with many congregations having moved to automatic payments already.
As part of our ongoing effort to streamline our processes, we're going to be transitioning all participating employers to ACH payments. We kindly request that all employers make the switch to ACH payments by August 30, 2024. This deadline is essential to ensure a smooth transition and minimize any disruptions.
In the next few weeks, we'll be introducing a new, simplified Subscription Agreement. For your convenience, the revised Subscription Agreement will incorporate your ACH information.
- If you are not yet on ACH payments, you'll need to submit a new Subscription Agreement by August 30, including your ACH information.
- If you are already signed up for ACH payments, we'll encourage you to submit a new Subscription Agreement so that we have all forms in the new format and you can be assured that your information is current.
Stay tuned for the revised Subscription Agreement!
Splits Form Reminder: Submit at End of Calendar Year
As reported in February, the Health Plan Splits Form is now submitted annually, rather than monthly. (The Department of Labor requires the reporting of how premium contributions are split between employer and employee, but they don't need a monthly breakdown.) |
Retirement Plan Restatement for Ease and Equity
Last year, the UU Organizations Retirement Plan (UUORP) moved from TIAA to Empower as its recordkeeper, but nothing about the Plan itself changed at that time. This year, the UUORP Plan Document is being updated; it was last restated in 2014. A draft of the newly restated plan document is available for review and comment. The restatement is necessary to comply with recent federal laws. It will also make the Plan easier to administer by participating employers and it incorporates changes designed for greater equity.
Notable changes include:
- Legal compliance items: Increasing the age for required minimum distributions and adding certain in-service withdrawal options.
- Standardizing the definition of compensation used for calculating employer contributions. For instance, rather than each employer choosing whether to include or exclude in lieu of FICA in their calculation, it will be excluded for all. This change is for both ease and equity.
- Expanding immediate employer contributions to include all UUA credentialed and certified professionals. (Currently only ministers.)
- Adding Roth contribution options. (Effective 2026.)
- Removing the auto-enrollment option for employers with fewer than 100 employees.
- Greater flexibility in changing the employer contribution percentage. Currently changes can be made only at the start of the calendar year. The draft plan allows changes at the start of either the calendar year or your fiscal year.
We welcome questions and comments through May 25. View this draft of the restated Plan and click below to submit questions and comments. (Presidents, Treasurers, Ministers, and Remitting Admins of participating employers should have already received the draft and comment form.) |
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