Finance
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Reminder! The next budget open enrollment will be December 1-31. Please plan now for any changes to your budget in light of the Medical premium increase.
REMINDER for this Open Enrollment – The Housing Allowance Form for 2023 is required to be turned in by December 31, 2022.
The “ORC – Cost of Living Adjustment” name in the budget has changed to “Salary – Cost of Living Adjustment” in your budget.
This newsletter is also published on the GMC for your future reference as well. We know that you have so much going on and that keeping up with what is happening in Finance may be another item on a never-ending task list – thank you in advance for taking some time to read these announcements and for the important work that you do every day. Our hope with sending this to you is not that you become an expert in all WV financial matters, but that you are informed of changes and know where to turn if you need help. It is our pleasure to serve alongside you!
In the United States, we are preparing for Thanksgiving soon – we are grateful to be a part of the team here at WorldVenture and for you and your service to those that are not yet disciples of Christ.
Rejoice always, pray continually, give thanks in all circumstances; for this is God's will for you in Christ Jesus.
And on that day you will say, "Give thanks to the LORD, call on His name. Make known His deeds among the peoples; make them remember that His name is exalted." Praise the LORD in song, for He has done glorious things; let this be known throughout the earth.
Oh come, let us sing to the LORD! Let us shout joyfully to the Rock of our salvation. Let us come before His presence with thanksgiving; let us shout joyfully to Him with psalms. For the LORD is the great God, and the great King above all gods. In His hand are the deep places of the earth' the heights of the hills are His also. The sea is His, for He made it; and His hands formed the dry land.
Let the peace of Christ rule in your hearts, since as members of one body you were called to peace. And be thankful. Let the message of Christ dwell among you richly as you teach and admonish one another with all wisdom through psalms, hymns, and songs from the Spirit, singing to God with gratitude in your hearts. And whatever you do, whether in word or deed, do it all in the name of the Lord Jesus, giving thanks to God the Father through Him.
Soraya Marin, VP/Chief Operations Officer
Luke Oravec, Treasurer
Fabian Perea, Assistant Treasurer,
Christina Segura, Senior Staff Accountant – Europe/MENA, Americas
Dan Penney, Staff Accountant – Africa, Asia
Madeline Shanley, Receipting Manager
Becky Binuya, Receipting Staff
Ryan Volz, Accounts Payable Manager
Renee Chase, Accounts Payable Staff
Belinda Viescas, Payroll Administration & Compliance
Cost of Living Indexes, Find in GMC in Knowledge Tab → FIN.UG.07.10 Cost of Living Indexes
Cost of Living Index Methodology, Find in GMC in Knowledge Tab → FIN.UG.07.09 Cost of Living Index Methodology
Expense Categorization Listing, Find in GMC in Knowledge Tab → FIN.UG.05.12 WV Expense Categorization Listing
Missionary Rate & Fee Schedule, Find in GMC in Knowledge Tab → FIN.UG.07.02 Missionary Annual Support & Fee Rate Schedule
WorldVenture provides insurance coverage on hired or rented vehicles when the vehicle is used for WorldVenture business, for example while renting a vehicle on Home Assignment. The insurance card for hired vehicles can be downloaded from the GMC by searching for “Hired Vehicle Insurance Card”. Use this card as proof of insurance to a rental company and then make sure that you have a copy of this card on-hand for the duration of your rental.
Please note the following term with respect to our hired vehicle policy:
If you have previously downloaded an insurance card, please note that an updated card will be available on the GMC Knowledge in October and is effective from October 20, 2022 to October 20, 2023.
A question that often comes up this time of year is, “what is the Housing Allowance?” This is a great question because housing allowance is something that impacts every open and set assignment worker’s paycheck as well as their personal tax return. This article will clarify, at a high level, what housing allowance is, how one qualifies for it, and how WorldVenture oversees housing allowance.
Before going too much further, it is important to note that this is a complex area of taxation and one that not every CPA or HR department understands unless they work with it every day. This article is not meant to constitute tax advice or consultation and does not describe the personal tax filing requirements for the housing allowance. We recommend that you work with Lois Huston or your CPA to understand the personal tax implications of the housing allowance in your personal taxes and finances.
The simple answer to this question is that housing allowance is part of the compensation that is paid to a minister (see below). This part of compensation is not subject to federal income taxes which can save money when it comes time to pay personal taxes. Normally, the compensation for a person who is eligible for housing allowance will be divided into two parts, one for housing allowance and the remainder to “regular” salary. For example, if Minister Smith’s compensation is $100 per year and $25 is housing allowance, then $75 is his regular salary. At WorldVenture, we approach this a little differently with our global workers, but the principle is the same. At WorldVenture, your housing allowance is in addition to your other salary amounts in your budget. Using the same amount for housing allowance, let’s assume that your housing allowance is $25 and your other salary items in your budget add up to $125, then your total compensation at WorldVenture is $150. We approach housing allowance this way because we currently have a needs-based salary model. In this example, the $25 could be excluded from reportable income on your tax return.
In order to qualify for housing allowance, a worker must be classified as a minister which means that they meet these criteria:
There are many steps involved with the entire housing allowance process, but to keep it simple, we have broken this down into three main steps.
It all starts during appointment where Partner Ministries works with a worker’s sending church and receives a document called the “Certificate of Assignment”. WorldVenture does not ordain, license, or commission a worker, but, rather, the sending church commissions the worker. The certificate of assignment formalizes a connection between WorldVenture and the sending church where the church affirms the worker’s call to ministry and assigns the workers to fulfill their ministry work under WorldVenture. This step is important in WorldVenture’s efforts to partner with sending churches as well.
The next step in the housing allowance process is that the worker must calculate and request their housing allowance using the housing allowance form (FIN.FORM.06.02 Annual Housing Allowance Request Form). This form is part of our standard operating procedure and is required for a worker to receive a housing allowance initially (even during appointment), when a different housing allowance amount is needed from their current amount and needs to be completed on an annual basis.
The final step requires the housing allowance to be approved with interim approval made by the Treasurer and then later ratified at a meeting of the Board of Directors. As a reminder, all paid workers are required to turn in a housing allowance form on a yearly basis whether you are requesting a change in the amount or not and the due date for the form is December 31st.
There is more that can be said about this topic, but hopefully this article has clarified the big picture of the housing allowance and how it is administered at WorldVenture. If you have more questions regarding housing allowance, please send an e-mail to financehelp@worldventure.com with “budget” in the subject line.
*Republished from an email from Linda Gawthrop on October 3, 2022
Dear Global Workers,
Greetings to you all!
Following discussions with our broker which included our plan analysis, market analysis and the current cost of healthcare, I am writing to share an update on WorldVenture’s self-funded health benefit plan for 2023.
As of January 1, 2023, the Global Worker rates will be as follows:
Employee Only: $863/month $33/month increase
Employee and Spouse: $1,554/month $60/month increase
Employee and Children: $1,554/month $60/month increase
Family: $1,897/month $73/month increase
The only benefit change to the plan is an increase in the hardware benefit under “Vision” (glasses, contacts, etc.). The benefit will increase from $500 every two years to $600 every two years. Everything else in the plan remains the same. We value the healthcare of our workers and want to continue to provide the best benefits possible.
Rates have been raised in preparation for anticipated costs. As you are aware, healthcare costs are continuing to rise both in the U.S. and around the world as are health premiums. Our goal over the years has been to reach, and hopefully to maintain, a balance of $2 million in the medical fund. Currently we have $1.8 million in the fund. This amount increases or decreases in any given month based upon the current healthcare expenses incurred.
We do maintain a stop-loss insurance of $250,000. This means that WorldVenture must pay the first $250,000 per person before the stop-loss insurance kicks in and covers the remaining medical costs for an individual in the current year. While we have not had anyone thus far this year who have reached that amount of $250,000 in claims, we have had incidents in recent years when claims have reached $250,000 for one or more of our families including some that have occurred in the same year. We do not know if any of us will incur costs that will require the implementation of this stop-loss insurance due to the current healthcare costs. This is why is so important for us to get to that $2 million dollar amount in the fund.
As a reminder, since our health benefit is a self-insured plan, this means that what we pay into the plan with our monthly premiums is the only money available to pay for the claims made to the plan. Self-insured plans are common and growing in popularity because they do not “buy the backing” of an insurance company’s billions of dollars. WorldVenture only contracts Aetna to serve as a third-party administrator, meaning that they manage the plan as it is written, but no Aetna funds pay or cover any of our medical claims. In looking for other options with insurance companies, such as Aetna, which are equivalent to our plan, the cost of monthly premiums would be higher than the new rates that we are implementing.
WorldVenture is not alone in facing the challenges of rising health insurance costs. Fellow mission organizations are facing rising costs and seeking solutions as well. As a family of both Global Workers and Headquarters Staff, we bear this challenge together. Join us in praying that God will provide for us, and improve the health of our WorldVenture family, as well as the plan, so that our sharing of the Gospel around the world will not be hindered.
You are encouraged to have your medical care done overseas when possible, as the costs for services are generally much less than the costs for the same quality services performed in the U.S. It is also beneficial to you to get your care overseas as there is no deductible when you do so. Peg, who is currently still working for WorldVenture, and Kara are
available to help you find a medical center of excellence and will work out the details for a direct settlement payment from Aetna.
If you have specific questions regarding the health benefit plan, coverage, or international centers of excellence, please contact Peg or Kara at medicalhelp@worldventure.com. For overall plan coverage, rates, components of the plan costs, etc. feel free to contact either Linda Gawthrop, Director of Personnel Ministries, or Soraya Marin, VP of Operations/COO.
May God bless each one of you as you faithfully serve Him.
Blessings,
Linda
We are pleased to announce an expansion of benefits under the policy for the Tax Equalization Fund. Effective after December 31, 2022 and for tax years ending after December 31, 2022, benefits from the tax equalization fund will include claims for the following:
Please review the policy document called, “FIN.POL.2018.004 Tax Equalization Fund Policy” found on the GMC Knowledge for more details.
The upcoming budget open enrollment may include a cost of living adjustment (“COLA”) for you based on the location where you work. The adjustment is based on an index that we buy from a third party. Sometimes the index that is reported for a given location will decrease from the prior open enrollment. We recognize that when an index decreases, it can create an undue hardship on our workers because it reduces the amount of the cost-of-living salary item in their budget which then reduces their take-home pay. In coordination with Global Initiatives, we have taken the position that we will not decrease the cost-of-living salary item should a decrease in the index be reported to us. We will instead keep the index that was last reported to us and use that for budgeting and salary purposes.
As was previously mentioned, WorldVenture partners with a third-party organization called “Advanced Consulting Ministry” (“ACMin”) to monitor the cost of living (“COL”) data for various locations. ACMin has provided WorldVenture with a summary of the methodology that they use to calculate the indexes that they provide to us for our COLA to worker salaries. A summary of their methodology is as follows:
We develop our cost of living index so that clients can have a reliable way of establishing and tracking increases and decreases in cost of living. For each location, we obtain proprietary pricing data for various spending categories like consumables, transportation, housing and health services. We only use the applicable host location data for our index and sort out the spending categories that do not affect host cost of living in order to create our COL index. We only include consumables, transportation, health services and taxes in our calculation, with consumables making up a majority of the factored costs. Categories are weighted to reflect an appropriate spending pattern.
Our data source has about 200 pricing agents obtaining real-time cost data to create a “basket” of goods that represents a Westernized lifestyle. The pricing data is designed to represent a true cost-of-living by pricing a substantial number of items and comparing them to the cost in the home location. In the event an item is unavailable or prohibitively priced, the pricing agents will substitute a suitable item to allow for a credible comparison between the home country and host country costs. Otherwise, we would merely have a cost-of-buying index.
ACMin has given WorldVenture permission to share this information and their full report with its worker community so that those who are interested can better understand this area of their budget and compensation. Please note that the full methodology and historical indexes are now available on the GMC Knowledge and we encourage you to review those at your convenience. We appreciate the trust that ACMin has placed in us to share this information and we respect the confidentiality of this information within our organization. Accordingly, please note that this information belongs to ACMin and sharing this report and data without express approval from WorldVenture Finance and ACMin is prohibited. Should you have any questions about COLA or the indexes, please contact us at financehelp@worldventure.com.
Effective October 1, 2022, the Medical Department will no longer pay our global workers’ medical bills.
This change carries adjustments to your budget and Medical Savings Contingency Fund (MSC):
Should you need help with the “Salary-Medical” item in your budget please contact financehelp@worldventure.com with “Budget” in the subject line.
As members of the Spousal Compensation Implementation Team (SCIT), we want to share an update on the Spousal Compensation Implementation Project. Through this project, WorldVenture is implementing the organizational decision to pay/compensate all global workers. This is a change from the current model where only one worker in a family, traditionally the husband, is paid. This decision resulted from the recommendations of the Spousal Compensation Task Force of 2020 and will allow WorldVenture to better recognize the ministry contributions of each of its’ Global Workers.
The Team has changed slightly since our last communication. Corinne Thorp resigned, as she and Jim begin to enjoy their retirement, and Kristy Messick (Ecuador) was invited to join the project in her place.
Several foundational pieces essential to the success of this project have already been implemented in 2022 including the new “Paychex” payroll software rollout and the migration to WorldVenture.com email addresses. Additionally, the Implementation Team has met on a regular basis since March, and weekly since August. We have been reviewing the current compensation model to understand how to address its deficiencies with the goal of developing a new model that is comprehensive and straightforward. One crucial step is working through the different scenarios and unique field situations, troubleshooting potential problems, to make the entire process as smooth as possible. To help in this, we are assembling a Focus Group of WorldVenture Global Workers who will help us analyze the proposed model from a field perspective. This Focus Group will be active in November and December 2022, and we anticipate the information will be invaluable in moving forward.
Through our meetings, the Implementation Team has realized the complexity of the task before us, and after careful assessment, unanimously agreed to delay the original implementation date of January 2023 to ensure that it is done well. Paying both spouses remains a high priority for WorldVenture, and we prayerfully anticipate implementing Spousal Compensation in late 2023. We believe this additional time is appropriate given the scope of this organization-wide project and the impact it will have on existing and future generations of Global Workers. We will provide a firm date as we reach future milestones and assure you that implementation will not be unnecessarily delayed. We thank you for understanding the need for this change and seek your prayers for much wisdom and discernment in the process.
Sincerely,
The Spousal Compensation Implementation Team
Tax Season will be coming up – as a reminder WorldVenture provides tax preparation services for you. Stay tuned for more information.
Information contained in this newsletter is intended for internal use by WorldVenture workers, staff, approved volunteers, and board members. Unauthorized distribution to other parties is not permitted without permission from Finance leadership.