Procedures for Paying 1099-required Services
Posted: Wed Sep 07, 2016 8:04 pm
Scenario: Stake pays a security guard for service at various stake-level fundraiser activities throughout the year. The security guard has been paid in cash out of the money raised during the fundraiser before money is recorded and deposited into Church accounts. Therefore, no record was ever kept of payment, nothing was ever hitting MLS related to payment for services or who was paid, and no 1099-MISC was issued.
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:
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?