Issuing a 1099

by John
(Green Bay , WI)

we are a small Wisconsin Church and we are looking to pay a women about $200.00 per week for secretarial work as a non-employee.

what must the church do to with the IRS to issue a 1099

Thank You
John

Comments for Issuing a 1099

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Dec 24, 2021

W-2 or 1099?
by: Vickey

First of all....make VERY sure she qualifies as an independent contractor.

Under today's new "test" ...if they don't have their own business and get multiple 1099s from LIKE businesses...the IRS pretty well considers them employees.

Worker misclassifications can cost the church dearly in penalties and payroll taxes.

See my article:
https://www.freechurchaccounting.com/misclassification-of-workers.html

Now, if she has a "business" that she takes care of multiple organizations' secretarial duties...then you just need to get a completed and signed W-9 form her BEFORE you ever issue that first check.

Then in January of the following year...you can use a 1099 software and file the appropriate forms and send her a 1099-NEC.

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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 =)

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