Senior Pastor Bonus

by Laurie A.
(Roseville, MI USA)

As part of the hiring package, our senior pastor was offered an annual bonus, based on YE "net income" if applicable.

How is this posted in quickbooks?

It is paid through payroll but I'm not sure what expense account to use since it isn't part of the annual budget, but more so on the bottom line at the end of the year.

Any help would be appreciated!

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Pastor Bonus Not Budgeted
by: Bill OConnell

Your church is headed for a crisis around necessary disclosure to the congregation.

The easiest number to calculate in your budget is the Pastors cash compensation. Yet the leadership is telling the congregation that it will be something else when it publishes the budget.

Your church has a larger problem than choosing a ledger account to use to post the bonus "variance."

Depending upon the "reasonableness" of the numbers, IRS might also have an interest in this compensation arrangement.

Wisdom Over Wealth is happy to discuss this approach with the leadership should they choose. I can be reached at 617-921-9321.

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