What Box Should We Report Independent Contractor Payments?

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Video Transcript:What Box Should We Report Independent Contractor Payments?Hi I’m Belinda Whitfield and today is open Q&A day. I’m taking an anonymous question from my inbox.The question is “We’re doing our 1099s and we need to add a vendor. Should the payments go in other income or non-employee compensation?” What they’re referring to is the different boxes on the form 1099.“Also, what is the threshold for the contract labor?”Two questions here. The key thing is whenever you’re paying your independent contractors you want to report that compensation in box 7 for non-employee compensation.Also, the threshold is $600 or more. It’s not necessarily one single payment. What you need to do is add up all of the payments that you’ve made over the course of the year. If the total is $600 or more, you’ll report that total in box 7 on your form 1099.Thank you so much for your question. Submit your questions on my website at churchcpa.com.Got questions about church finances? Submit your questions to me on my website at https://churchcpa.com/contact-us/]]>

Belinda Whitfield

Belinda Whitfield is a certified public accountant that specializes in serving churches and non-profit organizations. Through her firm, Whitfield & Associates, she provides tax services, accounting and compliance oversight and strategic planning for churches and non-profits throughout the United States.

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