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Showing posts from December, 2022

4th Quartile—Your Christian Ministry in Your 60s and 70s

  4 th Quartile—Your Christian Ministry  in  Your 60s and 70s By Corey A. Pfaffe, CPA, PhD Principal of MinistryCPA, a Wisconsin-based CPA firm  Psalm 90.10 – “The days of our years are … if by reason of strength … fourscore years.” “Retire early” they say. But you say, “I’m not done yet!” I’m with you on that one and so are a lot of chief executive leaders of Christian ministries (and Christian business owners, as far as that goes). We’ve taken reasonable care of our physical bodies. We’ve been advancing a rewarding cause we feel strongly about. And we want to develop others to continue and multiply what we’ve started—for their own benefit and for the benefit of the constituencies we serve. A man who knew a lot about advancing a cause and developing another to carrying on a vision that had possessed him for 40 years, wrote: “The days of our years are … if by reason of strength … fourscore years.” That’s right, Moses is the psalmist who recorded these words. Of course, his 120 years w

1099-NEC vs 1099-MISC- When should they be used?

In 2020 the IRS changed the types and format of Form 1099. Before 2020, non-employee compensation was reported on box 7 of Form 1099 Misc. When the change took effect, box 7 was changed to a single question and non-employee compensation received its own 1099. In this post, we will explain the different situations in which each 1099 may be used. It will not be a complete list, but it will give some context to the usage of the different forms.   1099-NEC Form 1099-NEC is used when reporting payments made to a freelance or contract worker who is not an employee of the company. Form 1099 does not need to be filed for every contractor, only the ones that were paid $600 or more during the year. Form 1099 also is not needed if the contractor is arranged as a corporation. Since the person is not an employee, the organization does not withhold any taxes from their pay. The form should be filed with the IRS and sent to the individual by January 31st.  To fill out the form the organization should