Accurate and complete personnel records are not only nice, they are a legal necessity. The Department of Labor has auditors who come to employers without an appointment and demand to see the personnel files. If the employer’s records are incomplete or inaccurate, the DoL can levy significant fines and fees. Churches are not exempt from these spot inspections and fees. Thus, churches must have good personnel files for that reason alone. However, churches must have good records so that as an employer it is following its employees’ requests when it comes to payroll deductions. If an employer’s Finance Office does not do what the employee wants, the employee may have a legal case against the employer

The legal minimums in a personnel file are:

• W-4 – this documents the employees name, address, and number of deductions for tax purposes
• I-9 – this documents that the employee is legally eligible to work in the US. The I-9 also requires additional identification forms. The most common are a US passport or a driver’s license plus a social security card.
• For states with income tax, a state version of the Federal W-4

The employer minimums for a personnel file are:

• An Employee Information Form which lists the employee’s personal info (name, address, phone numbers, emergency contact, birthdate, etc.) and wage information (salary or hourly rate).
• Annual sheets listing changes in wages
• Every document related to an employee’s payroll deductions for health & dental insurance, retirement, long-term and short-term disability, etc.
• Anything else related to an employee and his or her work at the employer

Annual Reviews:

• Employee evaluations should be kept in a confidential file, usually with the supervisor. Sometimes those evaluations are kept with the Finance Office’s employee files and that is acceptable.
• When an employee leaves, then all files related to that employee should be merged into one file and kept with the Finance Office’s permanent files.

Record Retention:

• The US government requires employee files to be kept for at least three years after termination. I usually recommend keeping the files for at least 10 years.
• Sometimes an employee will call and ask questions about his or her employment and these records can provide specific data that the employee may not have.
• Sometimes a prospective employer will call, too. Having the employment records, even the evaluations at that time, enables the former employer to answer questions better. By the way, it is ALWAYS best if a former employer will tell a prospective employer ONLY the dates of employment of a former employee.
• Many employers will include in the employee’s file a note stating whether or not the employee is eligible for re-hire. That is helpful especially for the future as memories fade.

Make sure your files are in order. Go do a self-audit today and see if you’d pass an inspection by the Department of Labor. It is better for you to do your own checkup than get fines and fees.

Lead On!

Steve

I rearranged the furniture in my office a few years ago. I had the typical setup: desk in the middle of the office with cabinets and shelves behind me and a couple of chairs on the other side of the desk for guests to sit in. When people visited me, there was always a desk between us. When I handed papers across the desk, it was perceived as impersonal and by some even imperial. If I wanted to explain a document, I had to come around the desk and sit in one of the chairs – it was sometimes awkward but it did lend a sense of control and power on my part.

A church administrator, by definition, already has a lot of authority in a church. He or she doesn’t need to have an office that reinforces that. The work the administrator does should demonstrate his or her position in the church, not the office. Many people are intimidated when they go to the administrator’s office just because of the position – some people are even quite fearful. I believe the layout of administrator’s office should help put people at ease. Here’s what I did to my office:

I moved my desk to a corner of the office in a position such that I could see anyone who was at my door (which always remains open).

• I even downsized my desk because I keep most files electronically and don’t need a big desk to hold files (a lateral file cabinet holds most files).
• I put a small round table in my office with four chairs. I like round tables because they have no “head” so all chairs are equal.

My office was now set – the round table was the centerpiece (not the desk) and all other furniture was pushed to the sides. Whenever anyone came to my door, I invited them to sit at the table. Most of the time people refused and just asked their question but about once a day, someone did sit and we had a conversation about whatever they needed (I got about 10-15 visitors a day). A couple of times I came to my office only to see others using it because they liked the set up; I took that as a compliment.

Whatever your position in the church, if you have a private office, I encourage you to physically structure your office to eliminate barriers between you and the people you serve. Instead, have a meeting place such as a round table as the main feature which will make your place inviting and less threatening.

Lead On!

Steve