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4.3.d Back Pay and Back Parsonage
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When an employee does not have sufficient funds in the account for which he or she is responsible to receive a full paycheck, the employee incurs a "shortcheck" for the earnings that were not able to be paid. Short checked earnings are accrued and tracked by GCM as "backpay" than an employee is eligible to receive in the event that he or she has excess funds in the account for which he or she is responsible in a pay period, after GCM fully pays the current month's wages and payroll expenses. GCM will generally compensate employees for back pay which has been acquired within the current year and past two years, subject to an employee fulfilling his or her obligation to raise the required amount of support for GCM. |
In the case of a GCM commissioned/ordained minister or pastor who does not have sufficient funds in the account for which he or she is responsible to receive his or her approved parsonage, "back parsonage" is not available. GCM does allow staff members to accrue "backpay" for any parsonage they did not receive in a given month. However, this backpay will be paid as "taxable" wages when the employee raises sufficient funds for the account for which he or she is responsible to be paid as backpay. If the commissioned minister/pastor is also a 401K participant (not including Roth participants), and has a pay period in which his or her taxable earnings do not exceed or equal his or her 401K contribution, GCM will also reclassify a portion of the employee's parsonage as "taxable" earnings to make the 401K contribution.
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