Skip to main content

Form 1099-MISC for Missions Support

Question:

Should the following items be included on Form 1099-MISC?
1. Checks to visiting pastors and missionaries from congregational love offerings 

2. Medical insurance coverage for pastors
3. Mission support from church fund to missionaries 


Answer: 

1. These amounts are reportable on Form 1099-MISC if the total amount given to the non-employee (visiting pastor or missionary) for the year totals at least $600.

2. Medical insurance coverage for pastors (who are properly classified as employees) are not reportable on Form 1099-MISC. For employers filing 250 or more Form W-2s, employee medical insurance is reported as Code DD in Box 12 of the W-2. At least for 2012 (W-2s prepared by January 31, 2013), employers with fewer than 250 employees are not required to report these amounts. IRS Issues Interim Guidance on Informational Reporting of Employer Sponsored Health Coverage
  
3. Mission support paid directly to another 501(c)3 organization (e.g. a mission agency) is not reportable on Form 1099-MISC. However, compensation given directly to a missionary from a church's mission fund is reportable to the missionary on Form 1099-MISC if the amounts total $600 or more for the year. These amounts would be reported on Box 7 of the Form 1099-MISC.

Comments

  1. What if the person that we support is in another country? What do we do about their 1099 info

    ReplyDelete
  2. Situations such as yours are universally dependent on the specific facts and circumstances of each case. Resolution will likely require professional assistance.

    ReplyDelete
  3. If we as a church support several missionaries directly at more than $600 per year, are we REQUIRED by the IRS to file a 1099, or should we only do so if the missionary requests it?

    ReplyDelete
    Replies
    1. See https://www.irs.gov/instructions/i1099msc/
      for instructions regarding requirements to file Form 1099.
      But in general, according to the IRS the payer has responsibility to report payments to nonemployees.

      Delete

Post a Comment

Popular posts from this blog

Qualified Small Employer HRAs

On December 13, 2016, President Obama signed the 21st Century Cures Act, allowing qualified small employers to offer Health Reimbursement Arrangements (HRA) that follow certain terms.

After the Affordable Care Act was passed, the IRS originally determined that an HRA was not a qualified group health plan. The Cures Act overrules this decision. HRAs are again an option for qualifying small employers.

To be eligible, the small employer must have fewer than 50 employees and must not offer a group health plan to any of its employees.

The Qualified Small Employer Health Reimbursement Arrangement (QSEHRA) must be subject to the following terms.
No salary reduction contributions may be made (i.e., 100% employer-funded).Employer must receive proof of employee’s minimum essential coverage.Reimbursements must be for qualifying medical expenses.Reimbursements for any year cannot exceed $4,950 (or $10,000 for family coverage), which will be adjusted annually for inflation.Employer must offer the …

Gifts Paid Out of Church Funds: Form 1099-MISC Requirements

Question:
 A church gave a wedding gift of $1000 to a couple who are church members. No goods or services were provided by the couple in exchange for the gift.  Is a Form 1099-MISC required? 
Answer: In the following answer, we assume that the couple are not employees of the church from whom the gift could not be viewed as compensation for their services. Also, the amount seems to be small enough to avoid any concerns of "private inurement."

Accordingly, no Form 1099-MISC is required. According to the 2017 IRS Instructions for Form 1099-MISC a Form 1099-MISC is only required for payment of goods or services. The requirements are as follows:
"File Form 1099-MISC, Miscellaneous Income, for each person to whom you have paid during the year:  At least $10 in royalties (see the instructions for box 2) or broker payments in lieu of dividends or tax-exempt interest (see the instructions for box 8);  At least $600 in:  1. Rents (box 1);  2. Services performed by someone who is not your …

Revised Form I-9 Released

The U.S. Citizenship and Immigration Services released a revised Form I-9. All new hires after January 21, 2017, must complete the revised Form I-9. All prior released versions of Form I-9 will be invalid for new hires.

Employers are required to have a completed hard copy of Form I-9 on file for each employee. Current employees do not need to re-complete the revised form.

More information on Form I-9 can be found on the USCIS website.