Questions: Obviously, this is not good and needs to be changed. We'd like to put a formal procedure in place to track this, and issue a 1099-MISC in accordance to IRS and Church policy (noted here: http://tech.lds.org/wiki/Form_1099-MISC) if paid over $600/year.
So, here we go:
- Is it ok to keep paying cash in this manner so long as we get some kind of receipt or affidavit of payment and purpose?
- Or, should we instead deposit all cash, and pay security guard via check? If we do this, should we receive a bill or invoice from the security guard as payment backing for the check/expense?
- How do we go about tracking this in MLS?
- If check, we'd categorize the expense - is there a specific category/sub-category you'd recommend creating/using?
- If cash, how do we track this?
- Is there an easy way in MLS to identify and/or track who needs to have a 1099-MISC issued, or should we track this external to MLS?
Any guidance would be appreciated.