Your Church 1099 Filing Guide:
5 Best Practices for a Stress-Free Season
Churches must file 1099s for vendors paid above the federal threshold each year. Here is what to know about the 2026 landscape and the habits that will make every future filing season simple.
As we wrap up 1099 filing season, it is the perfect time to look forward. While tax compliance may not be the most exciting topic in ministry, handling it well is a matter of good stewardship. Churches and nonprofits are required to file 1099s each year for individuals or qualifying businesses paid above the federal threshold. Here is what you need to know to stay compliant and keep your sanity intact.
The standard 1099 filing threshold has long been $600. Watch for a potential increase to $2,000 as proposed in recent updates. Fewer forms to file, but the organizational habits below remain the same regardless of the dollar amount.
5 Best Practices Starting Now
-
1
Collect W-9s immediately — never wait until January
Make it a firm policy to collect a W-9 from every new vendor as soon as they are engaged. Chasing W-9s in January after the invoices are paid is the most common source of 1099 headaches. With ChurchBiz's client portal, W-9 requests can be sent directly to vendors the same month they are first paid.
-
2
Separate honorariums from expense reimbursements in your chart of accounts
Create distinct lines for Guest Speaker Honorariums (taxable, reportable on 1099) and Travel Reimbursements (non-taxable, not reportable). This single habit simplifies 1099 reporting and keeps your budget tracking clean year-round.
-
3
Use the check memo line every time
Marking a payment as "Reimbursement" vs. "Contract Services" on the memo line tells your accountant exactly what is taxable and what is not. This small habit saves hours of reconciliation work every January.
-
4
Keep all staff payments on W-2s, not 1099s
Any bonus or extra payment to an employee must run through payroll. Never write bonus checks directly to staff members. If this happens in late December, there may not be time to get it into payroll, and the employee's W-2 will not reflect all their income. Staff should never receive a 1099 from their own church.
-
5
Use automation to track W-9 collection
The ChurchBiz client portal can request W-9s directly and securely from new vendors. You provide the contact email and ChurchBiz handles the follow-up. No more paper trails or awkward reminders — the administrative burden is handled for you.
Do not use your church as a conduit to pay individuals directly under the guise of ministry expenses. Any payment that benefits a specific person rather than the organization's exempt purpose creates both tax and legal exposure. When in doubt, ask your ChurchBiz CSR before writing the check.
Never Miss a 1099
Filing Deadline Again
ChurchBiz manages W-9 collection, 1099 preparation, and payroll compliance for churches nationwide. Our client portal makes the whole process automatic — so you can focus on ministry.