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love offering for the pastor or payroll?

by donna
(Lumberton, NC, USA)

every month the pastor of our small church receives $200 as a love offering. the pastor does not receive a w2 from the church nor is on any type of payroll. as our church is small, i am the secretary/treasurer with 2 assistants. should we be giving a 1099misc? or putting this in "payroll"? Also we recently started paying a church member to clean the church every month. He gets $125 monthly. Should he also get a 1099 and be added to a "payroll"? They are the only two people in our church who receive any type of compensation.

Comments for love offering for the pastor or payroll?

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Mar 31, 2015
 payroll or what?
by: Lewis in NC

The pastor would be considered a part-time employee and should receive a W-2. If the church member doing the cleaning does not operate a cleaning business, then he/she would be considered a part-time employee as well. So W-2's should be issued to both individuals.
Mar 31, 2015
 Love Offerings to Pastors
by: MarcusNTexas

I am assuming here that the $200 / month love offering is all that the pastor receives for his / her services as pastor. In other words, there is no other salary being paid. The $2,400 / year is, in fact, payment for services rendered by the pastor and is taxable income that should be reported on a 1099 MISC at the end of the year. If my understanding of IRS regs is correct, any payment to anyone for services rendered that totals $600 or more per year is considered taxable income including the janitor's $125/month. So 1099's are needed for both the pastor and the janitor.
Mar 07, 2016
 Love offering
by: Michael Wright

A love offering is considered compensation. Your employee who cleans the office for 125.00 a month may also be considered an employee. There are very specific guidelines that IRS has in place for pastors and ministers. This is something that my accounting company deals with very often.
Feel free to contact me should you have any other questions.

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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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