Happy together; managing your employees

The best way to avoid mistakes in hiring and in firing is to employ simple, repeatable processes to help insure that the right things are done at the right time.  One way to do this is to develop a “New Hire Packet” which should be given to each new employee.  Some of the items that should be submitted to each employee are:

KEY: A copy of the official church employee manual

A form W-4 to be completed by the new employee

A form I-9 (Department of Labor requires all I-9s to be filed in a stand-alone file)

In addition to providing new hires with relevant forms, the church should maintain a separate file for each employee.  Personnel files should be kept in a secure location and it is a good idea to store active and inactive personnel files in separate locations.  Medical information must be kept in a separate file from the regular personnel files in order to be in compliance with the Americans with Disabilities Act.  Other confidential information that should be kept separately includes the I-9, grievance and investigation records, and garnishments and loans to employees.

In addition, personnel files should include the original application form submitted by the employee, a signed W-4 and a copy of ministerial credentials for all employees hired to serve as ministers. (Ordination, licensing or commissioning certificate.)  This is not mandatory, but rather a “best practice” insuring that church ministers are treated properly for income tax purposes.  Paycheck deduction authorizations signed by the employee should also be retained and updated. 

KEY:  Finally, a record of performance reviews, evaluations and reprimands must be maintained on a current basis.

KEY: Many churches keep up with all of this paper work by using a personnel file checklist which assists in making sure all t’s are crossed and i’s dotted.