How to Pay an Independent Contractor

There are specific rules that dictate whether you should pay someone as an employee or as an independent contractor.  There is no single test for determining if an individual is an independent contractor or an employee. Employee misclassification has always been an important issue and often can trigger IRS attention. Generally, an employee has an…

Read More
How Much Do We Pay Supply Pastors

Payment to Supply Pastors Generally, the payment to supply pastors is $175 for one worship service, and $75 for each additional service/adult forum/Bible study on the same day and at the same location. Travel should also be reimbursed at the current IRS rate per mile, plus applicable parking, ferry, and road or bridge tolls. The payment…

Read More
IRS INDEPENDENT CONTRACTOR CHECKLIST

Mistakenly classifying an employee as an Independent Contractor can result in significant fines and penalties. The Internal Revenue Service (IRS) uses twenty factors to determine whether or not an employer has enough control over a worker in order for that individual to be classified as an employee. Designed only as a guideline, this checklist can…

Read More
Employees versus Independent Contractors

Incorrectly classifying someone as an independent contractor instead of an employee can be very costly for the church based on IRS penalties. When in doubt, your best bet is to classify someone as an employee. If you really want to classify an individual as an independent contractor, you can’t dictate how much time they spend…

Read More
Increased Payroll Audits for Churches

The frequency of payroll audits has surged over the last five years and churches are facing increased payroll scrutiny. Most payroll audits have traditionally focused on whether or not a church is misclassifying an employee as an independent contractor, thus avoiding Social Security, Medicare and other payroll taxes. Churches misclassify anywhere from 10 percent to…

Read More
Are your church workers classified correctly?

Churches may soon face increased scrutiny relating to employment classifications. The Treasury Inspector General for Tax Administration found in a recent study that 19 percent of small business employers didn’t comply with IRS rulings on worker status. This percent may be higher among churches. We recommended that your church review and increase compliance with employee…

Read More