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.
Retirement and Insurance Plans
Compensation and Staffing Guidance
Aid Funds
Compensation & Staffing News
December 2024

In This Issue...

  • Changes to Church Staff Finances Team (a note from our Director)
  • Year-End Payroll and Legal Reminders
  • Retirement Plan Changes Effective 1/1
  • UUA Winter Break and Blessings for the Season
Director's Note: Changes to Our Team 

Dear Compensation and Staffing News Readers,

I’m writing today about some changes to our team.  
  
We recently said goodbye to William Lester, our Insurance Plans Director. In his four-and-a-half
years with us, William modernized insurance products and services in countless
ways and brought on two great staff members, Ashley and Mariyah. We wish William
well. In the short-term, I’ll be providing direct oversight to the Insurance Team. 
  
Many of you know Jan Gartner as the editor of this newsletter and the leader of our Compensation Team. I’m pleased to share that Jan is now Associate Director, Church Staff
Finances. This promotion recognizes the substantial role Jan plays in coordinating communications and activities for our team, as well as providing backup leadership for me as needed. Congratulations, Jan!
Rev. Richard Nugent, Director, Church Staff Finances
Read Back Issues of This Newsletter

Year-End Reminders

Law Changes for 2025
The "Comp Team" (Jan and Sean) does our best to follow changes to federal payroll laws. Although we can't track state and local laws, we can tell you a few things to check for:
  • Minimum wage (Over 20 states are increasing their minimum wage on 01/01/25.)
  • Exempt salary threshold (The federal threshold has reverted to $684/week.)
  • Paid Family Leave (Some state programs are changing or starting in 2025.)
  • Pay transparency laws (requiring employers to provide salary ranges to job candidates)
  • Salary history bans (outlawing questions about pay history)
Ministerial Housing Allowance
Do you designate your minister's housing allowance by the calendar year? It must be formally designated by the congregation's leadership before any expenses can be applied to it. Designating a 2025 housing allowance before the end of 2024 ensures that your minister(s) can take full advantage of it in the new calendar year.
More about the Ministerial Housing Allowance

Retirement Plan Changes Effective January 1

Our Retirement Team has been busy processing your 2025 Employer Participation Agreement elections and Staff Reports.  Below are key reminders about ways the Plan is changing:

Calculation of Employer Contributions
For ease of administration, we've standardized how employer contributions are calculated. Beginning in 2025, the following will be universally excluded from the calculation:
  • Payment in lieu of FICA
  • Imputed insurance premiums
  • Gross-up amount for same-gender couples
  • Reimbursements for moving and travel expenses
  • Payments for other health insurance
  • Severance pay (excluded by law)
Staff Receiving Immediate Employer Contributions
All professionals credentialed or certified by the UUA will now receive employer contributions upon hire, regardless of hours or length of service. If you have a Credentialed Religious Educator or a Credentialed/Certified Music Leader who is not yet receiving employer contributions, be sure to start remitting those on January 1. 

Remember, all W-2 employees (age 18 and up) may authorize voluntary contributions through salary deferral at any time. See the reminder below about enrolling all employees.

Options for Changing Employer Contribution Percentage
Most employers will now be able to change their Employer Contribution Percentage at the beginning of either the calendar year or your fiscal year. (Those with Highly Compensated Employees can only make changes at the start of the calendar year. An HCE is an employee whose salary exceeded $160,000 in 2024, not including the housing allowance.)

Two Important Reminders...
  1. Be sure to enroll all of your employees in Empower and ask them to choose a contribution percentage. (They should enter 0% if they do not wish to make contributions.)
  2. Please send your EPA elections and Staff Reports by December 15. We're coming down to the wire in processing these restatement documents before our Winter Break!
Learn More About the Plan Restatement

Blessings for the Season

The UUA is closing at 2:00 on Friday, December 20, for the Winter Break, reopening on Monday, January 6, 2025. Members of our team will check regularly for time-sensitive messages.

As we head into the new calendar year, the Church Staff Finances Team wishes you a time of rest and restoration.

Faithfully,
Richard, Jan, Mary, Gloria, Jackie, Anna, Ashley, Mariyah, and Sean
Was this newsletter forwarded to you and now you want to subscribe? 
Or do you want to encourage others to subscribe?
Sign up for Compensation and Staffing News
The UUA Office of Church Staff Finances provides general information to
help equip and empower congregational leaders in their decision-making.
We are not legal or tax professionals and we do not track state law. Congregations are solely responsible for their legal obligations. We encourage you to consult your own legal and tax advisors for specific guidance.

UUA Church Staff Finances

24 Farnsworth Street, Boston, MA 02210

Unsubscribe - Unsubscribe Preferences