Managing a church is more than just leading worship and outreach—it also requires proper human resources (HR) management. Many churches overlook HR best practices, leading to legal risks, staff conflicts, and financial penalties.

In this guide, we’ll cover key HR best practices to protect your church, your staff, and your mission.

1. Properly Classify Employees and Contractors

Why It Matters:

Misclassifying staff as independent contractors instead of employees can result in IRS penalties and legal trouble.

How to Fix It:

• Employees: If a worker has a set schedule, duties, and receives benefits, they are likely an employee and require payroll taxes.

• Independent Contractors: If a worker is hired for a specific project and controls their own work, they may be a contractor—but must have a written agreement to avoid confusion. 

2. Create and Enforce an Employee Handbook

Why It Matters:

An employee handbook sets expectations for staff and protects the church from legal disputes.

What to Include:

• Church mission and values

• Code of conduct and ethical standards

• Employment policies (hiring, termination, benefits, leave policies)

• Conflict resolution and disciplinary procedures

• Workplace safety and harassment policies

STRONGChurches provides a complete, legally sound employee handbook template tailored for churches. 

3. Implement Background Checks and Child Safety Policies

Why It Matters:

Churches have a moral and legal obligation to protect children and vulnerable individuals from harm.

Best Practices:

• Conduct background checks on all staff and volunteers working with children.

• Implement a two-adult rule (no child alone with a single adult).

• Train all staff on mandatory reporting procedures for suspected abuse.

 4. Properly Structure Pastoral Compensation & Benefits

Why It Matters:

Churches must structure pastoral pay correctly to comply with tax laws and maximize benefits.

Key Steps:

• Set up a housing allowance to reduce taxable income.

• Ensure fair compensation through research and benchmarking.

• Follow IRS rules for Social Security exemptions and payroll taxes.

5. Establish Clear Termination and Conflict Resolution Policies

Why It Matters:

Handling terminations poorly can lead to lawsuits and division within the church.

Best Practices:

• Have written termination procedures to ensure fairness and compliance.

• Document all performance issues and disciplinary actions.

• Use mediation and biblical conflict resolution strategies when handling disputes.

Final Thoughts: Protect Your Church with Strong HR Practices

A church that follows HR best practices is legally protected, ethically sound, and able to focus on ministry rather than legal disputes.

👉 Need HR solutions for your church? STRONGChurches provides a Complete HR Tool Kit to keep your ministry protected. Click here to get started today!