Employee, hands down. Employers do not pay payroll taxes for independent contractors and IC ends up footing the bill while filing a Schedule C.

MA, I know from experience that it can be very difficult to prove IC status when working for a church. My 'work church' pays the choirmaster (moi) and the organist as part-time employees, but pays the quartet of section leaders in the choir as ICs. The difference, as told to us by the (Episcopal) diocesan auditor, normally comes down to "Do you do your work at times you have total control over, or do you do your work at specific, regular times and places that the one paying for it specifies?" If you have total control and/or the work is not laid out to be regular and longterm, the IRS says you can be a contractor.

Our paid choristers have an agreement that says that they are not required to work any Sundays at all, but that they may come and go as they see fit. In practical terms, I lay out the dates they are needed, and they tell me when they are available, and they get paid for whichever dates they show up. (I budget as if they are going to be there at every service (September through Pentecost) but I never spend the whole budget.) Two of them are utterly faithful and only take off when they absolutely need to; one works in another city and is only home on some weekends (but he's a tenor, he's been there forever, we get along well, and tenors are not thick on the ground in this area); another has a tendency to wait until the last second (Saturday night or Sunday morning rehearsal) to say "But I have opera rehearsal (or something else) this afternoon, so I need to cut out right after the anthem" or "I can't be there tomorrow" and I have to put up with it because they are ICs. We also pay brass (Easter) and string (Easter and Christmas) players as ICs, which is totally appropriate because they are contracted to do a few specific events, not a weekly gig.

My best advice would be--ask a professional tax accountant or lawyer. You do not want to tangle with IRS.

One diocese insists almost all employees are independent contractors....puts them in a real bind, since it is in direct violation of the law according to the IRS.

There are bishops and hr officers who must have a very difficult time going to confession. If they even try.

You know, there is a tremendous need for a grassroots organization to pop up in which we all pay a yearly fee and, when one of us gets fired without cuase - gets told they must accept independent contractor status....in direct contravention of the law, then the pastor gets a call from this group to arrange a meeting to discuss the actions of the pastor.

Attendant publicity...a few contacts in the media - 48 hours would be a good start...

It's really time for this.

The IRS has a page about it.

There are various factors that enter into distinguishing between employees and independent contractors. If the organization sets your schedule and pays a fixed salary, those factors suggest an employer-employee relationship. If you provide your own tools and are paid a flat fee for a project, that suggests a contractor relationship.

I should add that it's small-ball compensation b/c all my gigs have been part-time.

If the gig is full-time, you SHOULD be employee-status. Among other things, employee-status makes you eligible for unemployment comp and even a 401(k) or perhaps the church's pension program, not to mention health bennies.

I have a yearly salary, am covered by the diocesan health insurance, and participate in the 403b. I get a W-2 form at the end of the year. I think this is the best way to go, if you are able. Being independent keeps you from getting some important benefits, and is the cheaper way out for your employer.

IRS says at the link above:: You are not an independent contractor if you perform services that can be controlled by an employer (what will be done and how it will be done). This applies even if you are given freedom of action. What matters is that the employer has the legal right to control the details of how the services are performed.

So, unless you can choose all the music you want to play, propers instead of hymns and sing Latin exclusively...your pastor is controlling how services are performed and he is illegally paying you as a subcontractor or independent contractor

I had one pastor tell me to my face that I wasn't an employee even though I was paid on a regular schedule.

An organist/musician/whatever who has the regular schedule should be considered an employee. I don't see how anyone could possibly be considered an independent contractor when there's no independence in managing their schedule. In my situation, the problem was resolved just by talking to the secretary who was very clear (and correct) about it. As for what would be better, I'd go with employee for sure. At least that should be a steady job and regular income whereas an independent contractor couldn't be sure of being called all the time. While there is an advantage that you could probably charge more per Mass as an independent, you may not be given as much to do and so on, thus resulting in a lower wage overall.