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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