March 07, 2011

Year-end Tax Forms to Summer Interns

Question:

Should the church send a Form 1099-MISC to interns who worked for the summer?

Answer:

If the interns received more than $600, then Forms 1099-MISC must be issued. Apparently, the interns were treated as independent contractors. They will be subject to self-employment tax for social security and Medicare.

Most churches determine that interns are short-term employees subject to standard FICA tax withholding and matching by the church. In these cases, Forms W-2 are issued and the interns owe no additional social security or Medicare tax.

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