Ep 10 ~ Worker Classification: Employee or Independent Contractor

This is one of the most argued subjects that I get with church
personnel. Yet the IRS is VERY clear on this subject. Let's take
a look at what they have to say.   The IRS looks at 3 areas
to determine how to properly classify your workers. We will look
at each area briefly in this post. • Behavior Control • Financial
Control • Relationship of the Parties If you would like a printed
copy of the above information in more detail IRS Publication 1779
is what you want to research.   You cannot take just one of
the above and use it for your determination. No single factor
from these three groups is conclusive, BUT of the three areas of
consideration evaluated by the IRS, behavioral control is given
the greatest weight, followed by financial control. I will tell
you, according to the IRS, very few ministers qualify as
Independent contractors.   “Generally, you're an employee if
the church or organization you perform services for has the legal
right to control both what you do and how you do it, even if you
have considerable discretion and freedom of action." For more
information about the common-law rules, see Publication 15-A.
Employer's Supplemental Tax Guide   xo, Michelle


Next Steps:


Grab Your Freebies:  https://churchfinances.ck.page/guide


Learn More: www.churchfinances.org


Email Me:info@churchfinances.org


Want to work with me: www.hallmarktax.com  


Join the FB Community: 
www.facebook.com/groups/churchbookkeepingandclergytax