(Ellicott City, MD, USA)
Is it an option to "pay" the staff as contractors and issue a 1099 to them? Or do they have to be employees and get W2s?
And are there rules relating to how much raised actually gets paid to the employee?
For example, if they send a year end support letter and one of their donors makes a large donation in December, do we just pass that amount on to the employee via their next paycheck? Thanks
Join in and write your own page! It's easy to do. How? Simply click here to return to Church Accounting FAQs.
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 =)