I'm a treasurer for a small church (~36 members). Been doing it for about 3 years. I've never filled out any IRS forms (W-2 or otherwise) for this church. The pastor handles his own income taxes and pays his own FICA & medicare, etc.
My concern is regarding our pianist. She obviously plays the piano at all services and choir practice, but she also does a lot of secretarial work. For many years she was never compensated, nor did she ever request it. Then slowly, as I understand it, she was periodically paid a $20 love offering every week (as decided in a board meeting). This $20/wk went on for a few years. Obviously it was not claimed by her or the church. About 2 years ago, it was decided in a financial committee meeting that since the church was doing so well financially, that we would pay her $200/month. (She has a single salary household with 2 kids, she was doing fine, and never requested any of this).
She's never claimed this money with the IRS, nor has the church. We're paying her with checks.
Should we be claiming this, and thus paying her SS/FICA?
I'm afraid to ask the IRS, for obvious reasons. And I couldn't really find anything that fits this mold on their FAQ.
My concern is regarding our pianist. She obviously plays the piano at all services and choir practice, but she also does a lot of secretarial work. For many years she was never compensated, nor did she ever request it. Then slowly, as I understand it, she was periodically paid a $20 love offering every week (as decided in a board meeting). This $20/wk went on for a few years. Obviously it was not claimed by her or the church. About 2 years ago, it was decided in a financial committee meeting that since the church was doing so well financially, that we would pay her $200/month. (She has a single salary household with 2 kids, she was doing fine, and never requested any of this).
She's never claimed this money with the IRS, nor has the church. We're paying her with checks.
Should we be claiming this, and thus paying her SS/FICA?
I'm afraid to ask the IRS, for obvious reasons. And I couldn't really find anything that fits this mold on their FAQ.
), her kids and/or her parents, you may be able to distribute her income easily with no reporting/taxes at all.
