Handling of payment to childcare workers

by Mark Cermak
(Bloomington, Il)

We are going to pay individuals for childcare during our church activities. What is the best way to handle this? Should these people be treated as independent contractors or can we just pay them out of church funds with no withholding or need for a form 1099?


Thanks,

Mark

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

Comments for Handling of payment to childcare workers

Click here to add your own comments

Dec 16, 2010
IRS Definition
by: Pete

According to IRS definition of an employee childcare workers are considered such. If the employer designates the time, place to work and the duties which in this case they do; then they are considered emplyees for IRS purposes.

Many churches will treat them as contract labor and you must send them a 1099 if they make more than $600 annually. If they are teenagers and are baby sitters outside the church you can probably get away with paying them contract, but if on a full time basis well they are employees.

They must also fill out a W-9 if you are paying them as independent.

It is a pain but to be on the safe side if you are paying them on a regular basis you might want to consider treating them as employees.

Dec 29, 2010
Childcare workers
by: Irene

We have 2 paid childcare workers who work 2 hours a week each. They usually make close to 600.00 or more a year, however, if we make them employees this means we have to pay workers comp, etc. which is so expensive. What should we do?

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 Church Accounting FAQs.

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