1099 vs W2 for pastor

[Carol D]

Help!
In power church our pastor is set up as a vendor so he comes up on the list to produce 1099's.
Since there is not a way to put the housing allowance on the 1099, what is the proper thing to do?
I google he should get a W2 but he isn't set up in the employee part of powerchurch.
I also google that he could get a 1099 with the earnings amount showing earnings minus the housing allowance amount and give him a letter from the church stating his allowance amount.

The previous church treasurer issued a W2 for the paster and 1099's for the others as necessary but didn't use the powerchurch software to do it. I guess they put a multiform W2 in a typewriter....

What do I do? I have no experience with anything about producing year end tax documents.

Any and all help is greatly appreciated.

Carol

[NeilZ]

Help!
In power church our pastor is set up as a vendor so he comes up on the list to produce 1099's.
Since there is not a way to put the housing allowance on the 1099, what is the proper thing to do?
I google he should get a W2 but he isn't set up in the employee part of powerchurch.
I also google that he could get a 1099 with the earnings amount showing earnings minus the housing allowance amount and give him a letter from the church stating his allowance amount.

The previous church treasurer issued a W2 for the paster and 1099's for the others as necessary but didn't use the powerchurch software to do it. I guess they put a multiform W2 in a typewriter....

What do I do? I have no experience with anything about producing year end tax documents.

Any and all help is greatly appreciated.

Carol

Carol ..

1. You should setup the Pastor as an employee for 2018, as he is NOT a 1099 vendor he gets a W2.
2. You're going to have to manually create the W2 for the Pastor this year.

[Carol D]

Thanks.
Can I set him up as an employee and not take any taxes out?
This is so confusing to me because up until now he had been paid like a contractor without any tax withholding.
Also do you know if the church's Federal Employer Id Number is the same as the Maryland tax id number?

[NeilZ]

Thanks.
Can I set him up as an employee and not take any taxes out?
This is so confusing to me because up until now he had been paid like a contractor without any tax withholding.
Also do you know if the church's Federal Employer Id Number is the same as the Maryland tax id number?

Yes, you can set him up as an employee, and just don't add any of the Tax Pay Items.

FWIW ... if he does all his own withholding, quarterly payments, etc. more power to him. My pastor has FITW as well as state and local taken out. No worries about having to make quarterly payments, or having to come up with extra money at tax time

As far as the FEIN = the same as the Maryland, I really have no idea. Some states do use the FEIN, but others do not. You need to check with your state's dept of revenue.