Change Pastor from 1099 to W-2

Fund Accounting, Accounts Payable, Accounts Receivable, Payroll

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Maranatha.Trsr
Posts: 23
Joined: Sat Dec 31, 2011 1:20 pm

Change Pastor from 1099 to W-2

Post by Maranatha.Trsr »

I'm using PC V11.55. In previous years the pastor was the only paid "employee" so our accountant and previous treasurer had approved filing a 1099 instead of a W-2.
This was considered acceptable to the IRS since no taxes are withheld and the pastor pays Social Security and Medicare as Self-Employed. (He also has a "secular" job and pays Social Security & Medicare as an Employee for that job.)
During this year our church hired a secretary.
So I have the privilege of learning PC Payroll on the fly.
Since I will need to file W-2 for the employee, I would like to issue a W-2 instead of a 1099-Misc from PC for our pastor for 2013.

Is there a way to adjust PC to accomplish this?
Or do I need to issue a 1099-Misc for 2013 and make the change effective 2014?


Thanks,
Harold

NeilZ
Posts: 10578
Joined: Wed Oct 08, 2003 1:20 am
Location: Dexter NM
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Re: Change Pastor from 1099 to W-2

Post by NeilZ »

Maranatha.Trsr wrote:I'm using PC V11.55. In previous years the pastor was the only paid "employee" so our accountant and previous treasurer had approved filing a 1099 instead of a W-2.
This was considered acceptable to the IRS since no taxes are withheld and the pastor pays Social Security and Medicare as Self-Employed. (He also has a "secular" job and pays Social Security & Medicare as an Employee for that job.)
During this year our church hired a secretary.
So I have the privilege of learning PC Payroll on the fly.
Since I will need to file W-2 for the employee, I would like to issue a W-2 instead of a 1099-Misc from PC for our pastor for 2013.

Is there a way to adjust PC to accomplish this?
Or do I need to issue a 1099-Misc for 2013 and make the change effective 2014?


Thanks,
Harold
You could create a W-2, but I'd wait until next year. Just setup the Pastor in payroll, for the coming year, along with the Secretary.
Neil Zampella

Using PC+ since 1999.

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