Once self-employed, now employee of same church

by Julie
(Tulsa, OK area)

My husband, an ordained minister, agreed to do supply preaching for a certain church beginning the last Sunday of November, 2011, through all of December, 2011.

Each following month, they have asked if he'd be willing to preach an additional month as a pulpit supply and he has continued filling their pulpit, a month at a time.

I had assumed that since he made less than (is it $600 or $650) for 2011 from that single church in 2011, they did not have to fill out a 1099 for him, but that we would report this as self-employed income on our 2011 tax return.

A couple of weeks ago, they asked him if he would consider a long-term pulpit supply job/part-time employment with them, and if so, they would be willing to offer him more pay and would expect extra time from him for certain extra duties they would require (visitation, working with youth on a certain night each week, etc.)

The church board met this evening and approved such a hire. In my mind, if he accepts this "position", he is now officially an employee. What would you do with the income from last year -- get them to fill out a W-2 (even though it is after the January 31st deadline) -- was he an employee last year?

Or was he self-employed? And what will happen if for 2012 they fill out a 1099 for the first part of the year and then switch over to a W-2 for the portion of 2012 when they began paying him the higher pay for the change in duties required?

One last question? Can we have them designate 100% of the new pay as housing allowance if and when he accepts the "long-term pulpit supply / part-time ministry" job?

Click here to post comments

Join in and write your own page! It's easy to do. How? Simply click here to return to Minister's W-2.

Need training on how to use QBO or Aplos effectively for a church or better yet ...need an expert in either of those accounting software to do your monthly bookkeeping and/or payroll? See more on our accounting services!

Enjoy this page? Please pay it forward. Here's how...

Would you prefer to share this page with others by linking to it?

  1. Click on the HTML link code below.
  2. Copy and paste it, adding a note of your own, into your blog, a Web page, forums, a blog comment, your Facebook account, or anywhere that someone would find this page valuable.