Home › Organizing the Network

Budgets

Table of Contents [hide]
    1. Personnel
      1. Independent Contractor or Employee
      2. Employee Costs
      3. Support services
    2. Other costs to consider

Personnel


Independent Contractor or Employee

If you are hiring staff, you need to determine if they will be classified as independent contractors or employees. The IRS has a number of resources that can help you make this determination for an employee. An employer must generally withhold federal income taxes and pay Social Security and Medicare taxes and Unemployment Insurance. An employer does not generally have to pay any taxes on payments to independent contractors.
• You can get information at www.irs.gov. Specific sites related to this question include:
• Independent contractors versus employees
• You can also view form SS-8 Determination of Worker Status for Purposes of Federal Employment Taxes and Income Tax Withholding. A copy is below. However, if you decide to complete please go to the web site to ensure you have the current version

Employee Costs

Salary costs for an employee need to be adjusted for the employer’s contribution to Social Security (6.2% of wages), Medicare (1.45% of wages) and unemployment insurance. There may be additional state requirements. Both of the percentages listed above should be verified by the IRS.
The IRS has additional information at the Exempt Employer’s Toolkit.

Support services

Payroll can be a complicated process for individuals not familiar with the rules. Consider hiring someone to do this work for you. Local churches and the district office may have people who are familiar with the rules in your state and businesses that provide low cost payroll and accounting services.

Other costs to consider


Administration - including items such as filing fees for state and federal designations, postage, printing, and supplies
Fundraising expenses
Memberships
Professional and consulting services -
Program expenses
Travel and meetings – includes mileage, attendance at GA
Telecommuications – includes phone, cell phone and email tools
Web site/electronic support – cost of purchasing domains, use of server space, building and maintaining the web site, email programs