Ep 83 ~ The 3 Most Common Mistakes Churches Make with Form 1099

The three most common mistakes churches make with 1099 forms are:
Misclassifying Employees as Independent Contractors: Churches
often incorrectly classify workers (e.g., ministers, musicians, or
administrative staff) as independent contractors when they should
be treated as employees. This can result in tax penalties for the
church and confusion for the worker about their tax obligations.
Failing to Issue 1099-NEC for Eligible Workers: Churches sometimes
neglect to issue 1099-NEC forms to individuals or businesses paid
$600 or more in a year for services. This oversight can lead to
fines for failure to file the required forms with the IRS.
Incorrectly Filling Out 1099 Forms: Common mistakes include
entering wrong taxpayer identification numbers (TINs), misreporting
payment amounts, or filing forms late. These errors can result in
penalties and additional scrutiny from the IRS.

To hear more and to learn what mistakes have to be fixed, take a
listen to today's episode.
xo, Michelle Next Steps: 

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Minister Tax podcast is for general informational purposes only
and is not intended as legal advice. The content discussed is
based on personal opinions, experiences, and research performed
and should not be considered a substitute for professional legal
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