Are payments by a church directly to members or staff for wedding services treated as compensation? It seems fairly certain that such payments are taxable. The payments are small ($50 to $150 per person). Should these payments be reported as compensation (Form W-2) for the employees and Form 1099-MISC for non-employees (issued only if they exceed $600 per year)?
These payments are taxable and are properly reported as indicated within the second question. Similarly, honoraria that are paid to ministers directly by the benefiting party (weddings, funerals, etc.) are considered taxable compensation for services rendered.