January-February 2016

Yes. Since the amount paid for janitorial services is $600 or more and the provider of the janitorial services is not incorporated, a Form 1099-MISC should be issued with $4,000 reflected in Box 7 – Nonemployee Compensation. If the provider of the janitorial services was an incorporated entity, no Form 1099-MISC filing is required.

Dan Busby is president of the Evangelical Council for Financial Accountability (ECFA)—an accreditation organization that sets standards for governance, financial management, and fundraising/stewardship for churches and other nonprofits across the country.

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