After determining your status as an employer, you must notify all employees and contractors of the new law by September 30, 2019, or at the time of hire.
The following Word document templates may be adapted by filling in the name of your organization, its address, and federal EIN.
- For all employees on your payroll as of October 1, 2019,
- For all independent contractors who are individuals and for whom you will provide a 1099 in 2019, and who you will pay for services on or after October 1, 2019, download the template here.
- Collect a signed acknowledgement from each covered individual and keep it in their personnel file. If you do not receive the signed acknowledgement returned to the church, be certain that you have documented the delivery of the notice to the individual so that the church avoids penalties.
- The penalty for failing to provide notice is $50 per employee or contractor for the first violation and $300 per employee or contractor for subsequent violations.