Ep 10 ~ Worker Classification: Employee or Independent Contractor

The Bookkeeping with a Purpose Podcast- Bookkeeping, Christian Entrepreneur, Church finances, Clergy Taxes, Minister payroll, Biblical mindset,

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

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