Gift to church members and employees

by KIm

The church wrote checks to their church members who volunteers to help the church during the year about $1,000 each and $1,000 to their employee.

Does $1,000 to the employee considered bonus?

What does gift to church members considered? Does the church just need to send 1099-Misc to each church members?

Know the answer? Face the same situation? Please post your answer or comment by using the "comment" link below. Thank you!

Comments for Gift to church members and employees

Click here to add your own comments

Sep 15, 2010
Gift to church members and employees
by: Phil Collins

Taking the easiest part of the question first, i.e. $1,000 paid to employee(s), this is income and should be run through payroll so that income and FICA taxes are applied and that the employee
receives a W-2 and not a 1099.

?Giving? a volunteer $1,000 is very close to saying the volunteer is actually not a volunteer but an employee or possibly casual labor. The church member(s) definitely should receive a 1099.

Sep 15, 2010
Gifts for services rendered
by: Marcus in Texas

I agree with Mr. Collins. Anyone who is payed $600 or more for services rendered, whether volunteer or employee, is required to pay taxes on the "gift" or "bonus" either via the W-2 (employees) or the 1099 (volunteers). Inasmuch as the funds used to make such payments could have been claimed by the donor as tax deductions when the donor files her / his return with the IRS, payments of $600 or more for such services must be taxed. "Render unto Caesar what is Caesar's" and Caesar wants his / her $$$$$$....

Click here to add your own comments

Join in and write your own page! It's easy to do. How? Simply click here to return to Love Offerings.

Need a Consultation, help setting up an effective Accounting System, or someone to do your monthly bookkeeping?