The IRS has established guidelines to determine whether or not a contractor can be legally paid on a 1099. This checklist helps determine who has the “right of control.” Does the employer have control or “right to control” over the individual`s performance and how the individual performs the job? The more control over the conditions of employment is exercised, the more likely it is that the supervisory body will be considered an employer. The right to control (not the act itself) determines the status of a holder or self-employed person. The following list is only a directive; it does not guarantee that a person is properly classified. There is no uniform definition of “worker.” Most agencies and courts generally review all of the circumstances and balance the factors to determine whether a worker is a worker. To better determine how a workforce can be properly classified, you should consider these three categories: behavioural control, financial control and the relationship of the parties. While the musicians could break free in each program, the church selected the music, dictated the dress, presented hours of performance and rehearsal. In short, the Church exerts sufficient control over the details of the musicians` performance to make them collaborators.  The context of the case was whether the musicians were employed and could therefore join a union and bargain collectively.
The Tribunal`s jurisdiction was limited to the assessment that the NLRB had made a fair finding, without verifying the facts and without reaching its own independent finding. MYTHUS 1 – Companies are safe if their independent contractors: MYTH 3 – The use of independent contractors is great because: Download this brochure in Microsoft Word Download this pamphlet in pdf We often receive pastors, church members, committee members,. . . Are the musicians who paid your church for divine services and other ecclesiastical events independent collaborators or contractors? Contrary to what some churches may believe, it is a question of fact and not a certain “clear line” of verifying whether a musician paid by a church for services and events is an independent employee or contractor. Incorrect classification can have significant negative financial consequences for both the Church and the musician. The court considered as the last factor “the extent of the [musician`s] business opportunities” or, in other words, whether the musicians had “a significant chance of profit or loss”. The court found that the musicians could not “occupy several chairs, nor could they assign or sell their place in the symphony, or hire someone to take their place in a rehearsal or performance.” A few years ago, my church went through and changed the status of all our musicians and performers, from independent contractors to employees, after reading more about the IRS rules that qualify as an independent contractor. While I have certainly had some hindsight, our decision coincides with recent cases that confirm that most of the musicians and performers hired by departments are employees, even if they only perform for the Easter or Christmas program.
Most churches often face “staff classification,” usually with their musicians, assistants, secretaries, tutors, etc. What relevant factors can we gain from the Lancaster Symphony Orchestra, which can help church administrators properly classify church musicians as employees or independent contractors? Here are the important reflections: the Legal Council of the Church of England (LAC) has proposed revised guidelines to clarify the interpretation of certain issues related to the paid employment of musicians in churches.