Q: What are my options in a situation where the church receives a SS-8 from IRS for Minister who receives 1099-NEC?
I am a bookkeeper for a religious organization in New York City and received a SS-8 from the IRS referring to a minister who I issued a 1099-NEC for the past two years for her regular professional services to the church. There are several other ministers who perform similar service who also receive 1099-NEC. What is the simplest way to handle this situation. Should I simply reclassify this person. The alternative is completing the form with information about all of the other ministers' compensation?
Lawyers, want to be a Justia Connect Pro too? Learn more ›
- (916) 704-3009
- View Profile
- Answered
A:
Receiving a Form SS-8 from the IRS in this context indicates they are reviewing the classification of the minister as an independent contractor (reflected by the 1099-NEC) versus an employee. The IRS will determine whether the minister should be classified as an employee based on factors like the degree of control and independence in their work relationship with the church.
In responding to the SS-8, it's crucial to accurately describe the working relationship with the minister in question. Include details about how the work is performed, the level of control the church has over the minister's work, and other relevant information.
Reclassifying the minister without a proper review might not be the simplest or most appropriate solution. It could have implications for both the church and the minister in terms of taxes, benefits, and legal responsibilities.
If you're unsure about how to proceed, it might be wise to consult with a tax professional or an attorney who specializes in tax law. They can guide you through the process, help you understand the implications of different classifications, and assist in responding to the SS-8.
Remember, accurate classification of workers is important for compliance with tax laws. It's essential to handle these matters carefully to ensure both legal compliance and fairness to all parties involved.
Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.
The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.
Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.
