Does our pastor need a w2 or 1099 form ?

by Samantha
(Rogersville Al, United States)

We belong to a small community church. We do not have any other employees. Our pastor has been with our church for 17 years and receives a regular salary.

He isnt offered any benefits like insurance, or retirement. We do not withhold any taxes or social security money for him.

Should he be given a 1099 or a w2 form from the church treasurer?

Also if the church does supply him with a W2 form and he choses to file his taxes thru other means, can any penalities come back on the church?

Comments for Does our pastor need a w2 or 1099 form ?

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Nov 28, 2012
W-2 or 1099...Employee or Not?
by: Vickey

Which one you issue would depend on whether he is considered an employee or not.

See this page Employee or Not for more information.

If he a founder or has full control over the church, you could probably just issue him a 1099; however, if the church hired him and controls his duties...he is an employee and should be issued a W-2.

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Join in and write your own page! It's easy to do. How? Simply click here to return to Clergy Tax Q&A.

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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