1099-misc

[oceanlovin'ea]

a religious group has hired a person to maintain the lawn and grounds around the building. They pay him $675 per month. The question has come up....are they required to give this man a 1099-misc?
Thanks

Linda F

[Lion]

Unless he's an employee and they're issuing him a W-2.

[TAXNJ]

Have you looked at The Tax Book 5-22 “INDEPENDENT CONTRACTOR VS. EMPLOYEE”

[oceanlovin'ea]

I'm not questioning employee vs independent contractor. He would be an independent contractor. I am asking if a religious group is required to issue a 1099-misc to this individual. Is it based on whether he is a s corporation or an LLC? He has been doing this for years and they have never issued one to him. I'm sure he claims the income on his tax return. But someone has brought up the question about the 1099-misc. They do not have employees.All cleaning and maintenance work is done by volunteers. This is the only thing they have ever paid someone to do.

Linda F

[Lion]

If they pay him over $600 and he's not incorporated, then the client of the IC issues a Form 1099-MISC to the IC. The client can, but is not required to, issue a 1099-MISC even if they pay the IC less than $600 &/or even if he's a corporation.

The church should have a signed W-9 on file for all ICs. Depending on your state, ICs might need to provide proof of liability insurance; otherwise, the church might need to cover ICs the same way they cover employees.

A church should want to do things right, be a good example, render unto Caesar, etc. And, they should be very sure he is an independent contractor and not an employee if they do not issue a W-2.

[frankie123]

I have a client who cuts the grass for his church, they pay him a couple thousand a year. He uses his own equipment. his gas and sets his own hours. They give him a 1099 MISC and it is put on a Sch C in his tax return and he pays SE tax on it. I think your question is, would a church be subject to the same law as any other business that hires someone to take care of their lawns. I would say yes and then what all the answers above are saying would come into play.

[TAXNJ]

I'm not questioning employee vs independent contractor. He would be an independent contractor. I am asking if a religious group is required to issue a 1099-misc to this individual. Is it based on whether he is a s corporation or an LLC? He has been doing this for years and they have never issued one to him. I'm sure he claims the income on his tax return. But someone has brought up the question about the 1099-misc. They do not have employees.All cleaning and maintenance work is done by volunteers. This is the only thing they have ever paid someone to do.

Linda F

When you ask, “ I am asking if a religious group is required to issue a 1099-misc to this individual. Is it based on whether he is a s corporation or an LLC?“.

Use resources that Tax Professionals often refer to. You can easily find your answer right in The Tax Book and on the IRS website (see link below):

https://www.irs.gov/charities-non-pr...rns-forms-1099

[oceanlovin'ea]

Thank you very much for your responses. A new person has taken over handling those duties now and he was questioning me about it. I wanted to make sure I gave him the correct information

Linda F

[TAXNJ]

Thank you very much for your responses. A new person has taken over handling those duties now and he was questioning me about it. I wanted to make sure I gave him the correct information

Linda F

It is a good question often asked and as the instructions state in the General Instructions for Information Returns “Generally, payments to corporations are not reportable. See, for example, Regulations section 1.6049-4(c)(1)(ii). However, you must report payments to corporations for the following........”