How to give someone small compensation for cleaning church?

by Julie
(Michigan)

We have a very small church congregation and we rent a storefront as our meeting place. Our pastor has a secular job from which he draws his income. We reimburse him for his mileage only. Thus, we currently issue no W-2's. Our pastor would like an elderly gentleman in our congregation to clean the building for $25/week. How can we compensate the gentleman for this? I am a volunteer bookkeeper and don't want to get involved in payroll for such a small amount of money. Can we give him $25/week and issue a 1099 instead?

Comments for How to give someone small compensation for cleaning church?

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Jul 22, 2014
cleaning pmyt
by: Sandi

although you need to always ensure you comply with the current IRS publications here is a summery of I.R.S. Publication 937:
http://www.flumc.org/mp/pdf/employee_or_independent_contractor.pdf

there is also form SS-8 on the IRS site you can fill out to help you decide: http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Independent-Contractor-Self-Employed-or-Employee

prayers

Jul 22, 2014
2 hours a week
by: Julie

I read the publication you recommended. To clarify, it would only take an hour or two a week to clean/vacuum the building. He would do this at the time of his own choosing and open/close the building himself - most likely during the day when the pastor is on his secular job. Our attendance is usually around 2 dozen people. There may be times during the year he is not able to clean the church when he is out of the area for months at a time. The duty would then fall upon the pastor's family. Does it sound like the gentleman could be considered an independent contractor?

Nov 08, 2016
Response to comp for cleaning church
by: Anonymous

Is he using his own vacuum, cleaning supplies etc? If not, he is an employee. There are free payroll services online that would make paying him once a month pretty simple.

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