Gift for Volunteer Elder

by Mike Montoya
(Thornton, CO USA)

We have an outgoing volunteer elder/pastor. We thought it would be nice to gift him with $2,500.00 gift.

This would come out of our general fund.

So, my question is, what do I have to do to stay legal and above board in this possible gift?

Mike

Comments for Gift for Volunteer Elder

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Aug 10, 2019

It is Taxable Income for Him
by: Vickey

The IRS would consider it a "gift" for his "service" to the church, so it would definitely be considered taxable income.

The hard part would be in determining if ....by paying this volunteer....would you have to withhold and match FICA as an employee or simply have him complete a W-9 and report the income on a 1099.

Read my article on Misclassification of Workers: https://www.freechurchaccounting.com/misclassification-of-workers.html

AND click on the IRS reference link in that article.

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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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