Taxpayer asks:
Hi there. I work for a church that has musicians perform on a regular basis (at least once a month). We cut them a check each time they perform; nothing is run through payroll. Do they need to fill out a W-9? If yes, what do I need to do on my end? Appreciate any help you can offer.
Taxgirl says:
If you intend to treat the musicians (who I am assuming are not incorporated) as independent contractors, then you should have them fill out a form W-9. I don’t know the going rates for musicians these days (as a pretty sad trombone player and only a decent floutist, I can’t say) but I’m guessing that it is likely that you would pay out more than $600 in a taxable year. To ensure that you’re in compliance at the end of the year, I would issue a form W-9 to the musicians in advance of their performances. If you’ve already paid out some for 2009, just issue one now, no worries. It’s just easier to do it at the beginning in case there are compliance or backup withholding issues.
Like any good lawyer, I need to add a disclaimer: Unfortunately, it is impossible to give comprehensive tax advice over the internet, no matter how well researched or written. Before relying on any information given on this site, contact a tax professional to discuss your particular situation.
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http://sadtrombone.com/
I couldn’t resist.