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Gift to church members and employees

by KIm

The church wrote checks to their church members who volunteers to help the church during the year about $1,000 each and $1,000 to their employee.

Does $1,000 to the employee considered bonus?

What does gift to church members considered? Does the church just need to send 1099-Misc to each church members?

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Comments for Gift to church members and employees

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Sep 15, 2010
 Gift to church members and employees
by: Phil Collins

Taking the easiest part of the question first, i.e. $1,000 paid to employee(s), this is income and should be run through payroll so that income and FICA taxes are applied and that the employee
receives a W-2 and not a 1099.

?Giving? a volunteer $1,000 is very close to saying the volunteer is actually not a volunteer but an employee or possibly casual labor. The church member(s) definitely should receive a 1099.
Sep 15, 2010
 Gifts for services rendered
by: Marcus in Texas

I agree with Mr. Collins. Anyone who is payed $600 or more for services rendered, whether volunteer or employee, is required to pay taxes on the "gift" or "bonus" either via the W-2 (employees) or the 1099 (volunteers). Inasmuch as the funds used to make such payments could have been claimed by the donor as tax deductions when the donor files her / his return with the IRS, payments of $600 or more for such services must be taxed. "Render unto Caesar what is Caesar's" and Caesar wants his / her $$$$$$....

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