Classification of Ministers, Employees and Contractors
The first step in complying with the Internal Revenue Code is to understand how the code classifies ministers, employees and contractors. Church Contractors Software . The proper classification is very important because of the different tax laws that affect each category. Most churches will have at least some personnel in each of three separate categories:
1. Minister employees
2. Non-minister employees
3. Independent contractors
The book answers each of these questions:
- Do minister’s receive special tax treatment?
- Who is considered a minister for tax purposes?
- Is a part-time youth/music minister considered a minister for tax purposes?
- Do non-minister church employees receive special tax treatment?
- Can the church choose to treat an employee as an independent contractor?
- What determines if someone is an employee or an independent contractor?