Hiring Temporary Employees
Churches often have lots of tax and legal questions when hiring temporary employees.
Temporary employees are still employees; not independent contractors.
An employee working in a church — whether the job is temporary or permanent, part-time or full-time — is an employee of the church. It is illegal for the church to treat a temporary worker as an independent contractor. The “employee” classification is not determined by how much you are paid or the amount of time you work for the church; it is determined by the nature of the work performed.
The church is required to withhold taxes from your wages.
Employment tax requirements are determined by the amount of the gross wages paid to an employee.
The church is required to withhold payroll taxes from any wages and then report and pay those taxes to the tax agencies .At the end of the year, the church should provide a W-2 Form detailing the wages as well as the taxes that were pre-paid throughout the year.
Clergy Financial Resources serves as a resource for clients to help analyze the complexity of clergy tax law, church payroll & HR issues. Our professionals are committed to helping clients stay informed about tax news, developments and trends in various specialty areas.
This article is intended to provide readers with guidance in tax matters. The article does not constitute, and should not be treated as professional advice regarding the use of any particular tax technique. Every effort has been made to assure the accuracy of the information. Clergy Financial Resources and the author do not assume responsibility for any individual’s reliance upon the information provided in the article. Readers should independently verify all information before applying it to a particular fact situation, and should independently determine the impact of any particular tax planning technique. If you are seeking legal advice, you are encouraged to consult an attorney.
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