Classification of Ministers, Employees, and Contractors
The first step in complying with the Internal Revenue Code is understanding how the code classifies ministers, employees, and contractors. Church Contractors Software. The proper classification is essential 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 ministers receive special tax treatment?
- Considering 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?