1099 for custodian

Our church custodian is a member of our church. We pay her approximately 4000.00 a year. I have been treasurer for 9 years and we have never issued a 1099. Should we have been doing this? She is considered contract labor. Also our organist comes from a different church to play. She is paid approximately 1200.00 a year. Does she need a 1099?

Comments for 1099 for custodian

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Feb 24, 2015

1099s for services rendered
by: MarcusNtexas

Unless there has been a change in IRS regs, anyone paid $600 or more per year for services rendered to the employer as a contractor must receive a 1099. Our custodian is paid about $5,000 / year as an employee and we pay social security and medicare matching on her. If anyone is being paid as a contractor, it is important to advise them that the church is not paying into social security or medicare for them and they have the responsibility for making such payments themselves.

Feb 24, 2015

1099's and w-2's. . .
by: Lewis in NC

It is right to report both amounts to those being paid for services to the church. First, determine if they are employees or contractor and then either report their full or part-time earnings on a W-2 for employees or 1099 for contractors. Read more about it on the links to the left.

Nov 04, 2015

Avoid potential penalties
by: C

The IRS is increasing the penalty for failing to issue a 1099 for payments made over 600 if she does not have a business that is a corporation.

Its important to make sure she qualifies as an independent contractor. There are rules regarding how independent she is in regards to hrs worked, using her own equipment to clean, etc.

You don't want to be hit with past soc sec and medicare costs as well as penalties also. Church and Tax Law is a great resource to keep churches informed with IRS laws.

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

If you want to DIY your payroll, I highly recommend you look at using Gusto! It is very user friendly and their support is awesome! Plus they know how to set up and maintain payrolls for churches and nonprofit organizations.

Note: I am a "partner" of Gusto, but as I have told you before ... I never recommend anything that we or our clients have not tried and love =)

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