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Handling of payment to childcare workers

by Mark Cermak
(Bloomington, Il)

We are going to pay individuals for childcare during our church activities. What is the best way to handle this? Should these people be treated as independent contractors or can we just pay them out of church funds with no withholding or need for a form 1099?

Thanks,

Mark

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Comments for Handling of payment to childcare workers

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Dec 16, 2010
 IRS Definition
by: Pete

According to IRS definition of an employee childcare workers are considered such. If the employer designates the time, place to work and the duties which in this case they do; then they are considered emplyees for IRS purposes.

Many churches will treat them as contract labor and you must send them a 1099 if they make more than $600 annually. If they are teenagers and are baby sitters outside the church you can probably get away with paying them contract, but if on a full time basis well they are employees.

They must also fill out a W-9 if you are paying them as independent.

It is a pain but to be on the safe side if you are paying them on a regular basis you might want to consider treating them as employees.
Dec 29, 2010
 Childcare workers
by: Irene

We have 2 paid childcare workers who work 2 hours a week each. They usually make close to 600.00 or more a year, however, if we make them employees this means we have to pay workers comp, etc. which is so expensive. What should we do?

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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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