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Paying Visiting Ministers

by Bonnie
(SC)

I have handled accounting for several small churches in the past/present. I continually hear disagreements on what to call the amount of money given to visiting ministers. Most of the money comes via the offering however in some cases it is supplemented by the church. Can you give insight as to the best way to handle these checks?

Answer

Make sure you have each visiting minister fill out a W-9. If they are paid over $600 in a calendar year, you will need to send them a 1099.

Vickey




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Paying Visiting Ministers

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Mar 26, 2010
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Paying Supply Preachers
by: Marcus in Texas

Payments to "supply" preachers is considered "payment for services rendered" and if the total amount paid is $600 or more annually to any individual, then IRS Form 1099 must be issued to the person receiving the payment(s) and filed with the IRS. At our small church (annual budget of $200,000) we have a budgeted line item called "Supply Minister" and have budgeted an amount in that line item and that item is "funded" in the base operating budget of the church--funds coming from regular weekly/monthly tithes and offerings. We also have another budget line item for "Love Offerings" and money donated by members for that purpose is credited to that account and then payments in the form of checks are charged (debited) to that same account. If a "special" offering is taken for a speaker or a singer, then the money goes into the "love offering" account and a check to the speaker or singer is paid from that account.

I am not a tax attorney nor am I a CPA, so these are my opinions based only on experience.


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