There used to be a 20-point test for determining the status of a worker as an independent contractor versus an employee. While the IRS has done away with that test, you can […]
W-2
My church gave our pastor a cash gift as a love offering. Does this have to be included on the W-2?
If cash is paid to the pastor through a love offering or other gift or bonus paid through the church, it is taxable income to the pastor and should be […]
Should our church’s organist be considered an employee or a contractor? Do we have to report his income on a 1099 or W-2?
Each person who receives payment for services rendered in a church should be evaluated to determine if they meet the requirements to be considered an employee or a contractor for […]
My pastor says that I should give him a 1099 for his salary paid by the church instead of a W-2. Is that correct?
Pastors should be given a W-2 to report income received from the church. Only contractors who are not considered employees of the church should receive 1099’s if the income is […]
My church only has a W-2 to fill out for my pastor and a 1099 for our janitorial service. I do not want to buy a whole pack of forms to get just one of each. Is there a better way to do these?
You can get free paper forms from the Social Security Administration office if you would like to visit one to pick these up, or you can file online for free […]
Can a minister assign earned income to a charity and avoid paying taxes on it?
No. It would still be taxable to the minister and would be added to Box 1 of the W-2. The power to dispose of income is the equivalent of ownership.