Do we need to write a termination letter?

There is no federal requirement for churches to provide written notice about why someone is being terminated, but we do recommend providing written notice as best practice. This reduces the likelihood of the terminated employee spinning up their own (possibly illegal) reason for the termination and then claiming there is no documentation to the contrary.

If you provide a letter, it should include the reason for the termination, any relevant details regarding their benefits, and when and how they’ll receive their last paycheck (if you aren’t giving it to them in person at the termination meeting). The employee may not be in the best frame of mind to remember the details of your meeting, and the letter will remind them what comes next. We recommend being truthful and direct about the reason for terminating an employee. Doing so can help provide closure and is generally a professional courtesy.

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Clergy Financial Resources serves as a resource for clients to help analyze the complexity of clergy tax law, church payroll & HR issues. Our professionals are committed to helping clients stay informed about tax news, developments and trends in various specialty areas.

This article is intended to provide readers with guidance in tax matters. The article does not constitute, and should not be treated as professional advice regarding the use of any particular tax technique. Every effort has been made to assure the accuracy of the information. Clergy Financial Resources and the author do not assume responsibility for any individual’s reliance upon the information provided in the article. Readers should independently verify all information before applying it to a particular fact situation, and should independently determine the impact of any particular tax planning technique. If you are seeking legal advice, you are encouraged to consult an attorney.

For more information or if you need additional assistance, please use the contact information below.

Clergy Financial Resources
11214 86th Avenue N.
Maple Grove, MN 55369

Tel: (888) 421-0101 
Fax: (888) 876-5101
Email: clientservices@clergyfinancial.com

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