1099-Misc for Self-Employed Ministers in Payroll Module

Dkgross · Post by **Dkgross** » Wed Mar 24, 2004 2:36 pm

Is there a way to print a 1099-Misc from the payroll module? I set up both our employees and self-employed ministers in payroll but don't see a way to print the 1099 from there - just W-2 & W-3.

Also, is there a way to print checks for Christmas Bonuses, Pastor Appreciation, etc from payroll so that the amount gets accumulated with the gross income and is included on the tax forms (W-2 or 1099-misc)?

Post by **Zaphod** » Wed Mar 24, 2004 2:59 pm

1099-MISC was a feature added in version 8.5, but is available from the Accounts Payable module, not Payroll.

To handle your second issue (additional income), you could just use an additional income item on the check that is only set to process on the occasions you need it.

Dkgross · Post by **Dkgross** » Wed Mar 24, 2004 3:09 pm

Zaphod wrote:1099-MISC was a feature added in version 8.5, but is available from the Accounts Payable module, not Payroll.

To handle your second issue (additional income), you could just use an additional income item on the check that is only set to process on the occasions you need it.

Is there any future plans to add the 1099-MISC feature to payroll? We have 3 self-employee ministers on our staff - the only employee of the church who gets a W-2 is the secretary. Also, was I incorrect in using the payroll module for self-employed ministers?

Zeb · Post by **Zeb** » Wed Mar 24, 2004 3:48 pm

Dkgross wrote: Also, was I incorrect in using the payroll module for self-employed ministers?

when someone gets a 1099 they are considered like a vendor, and thats the reason for it being in Accounts Payable. You don't deduct taxes or give W2's for them so there is really no reason to consider them a Payrol employee.

Post by **Jeff** » Thu Apr 01, 2004 9:46 am

1099s will not be added to payroll. Even though pastors are considered self employed for tax purposes, they should still receive a W2. We suggest you talk with a qualified accountant. Try to find one with experience doing clergy taxes. There are several issues that a person might not be familiar with unless they specialize in this area. You might want to also check out the Church & Clergy Tax guide from Christian Ministry Resources. It has a lot of useful information as well.Their web site is: http://www.churchlawtoday.com/