Executive Compensation

Are you being paid enough? Are your benefits all they should be? Compensation Evaluation Studies conducted by Winters & King, Inc. have indicated that many pastors and key employees are underpaid.

Equipping organizations with compensation evaluation studies
Compensation Evaluation Studies provide the information needed to determine competitive compensation packages for pastors and key employees while also satisfying governmental requirements. We will also advise you on the following:

• How to select an unbiased compensation committee comprised of unrelated and non-disqualified parties;
• How to set competitive compensation ranges for key employees;
• How to use comparability data based on national, public and private salary surveys
• How to comply with IRS and governmental regulations pertaining to reasonable compensation; and
• How to properly document compensation arrangements.

Many churches and ministries are not aware that failing to adhere to IRS compensation guidelines can result in severe tax penalties on both the employee and the members of the Board (or committee) that approved the compensation. The penalty can be as high as 200% of the amount of compensation the IRS deems to be above what is “reasonable”. Governmental bodies and agencies have increased efforts to require greater transparency and accountability regarding the compensation practices of tax-exempt organizations. Further, The IRS Form 990 (which applies to ministries but generally exempts churches) requires that organizations detail the method used to determine compensation packages. A proper Compensation Evaluation Study can allow the organization to establish a rebuttable presumption that compensation in line with the study is reasonable. The IRS would have to overcome this presumption before imposing any penalty for compensation which was more than reasonable. Also, relying on a study performed by our law firm can eliminate the possibility of penalties against the individual members of the Board (or committee) that approved the compensation.

Founded in 1983, Winters & King, Inc. has provided legal services for religious and charitable non-profit organizations of all types and sizes. Our firm has provided assistance to more than 4,500 organizations located throughout the United States and more than 40 foreign countries. Winters & King, Inc. has provided hundreds of Compensation Evaluation Studies for pastors and key employees of churches. The firm’s unique access to the compensation packages of other tax exempt organizations all over the country allows us to provide competitive compensation ranges. We can help your organization establish a reasonable ceiling for compensation packages based on our access to confidential comparable data which is not available in any survey you or anyone else can purchase.

Call us today to ensure you are being fairly compensated
Compensation Evaluation Studies provided by Winters & King, Inc. have proven invaluable to clients undergoing IRS audits and inquiries by the Senate Finance Committee, and we would be privileged and honored to serve you. To receive your personalized Compensation Evaluation Study package, call (918-494-6868) or contact us and ask about a compensation study.