Education Benefits

[char12345]

What is the name of your state (only U.S. law)? VT

Our volunteer non-profit corporation has voted to pay for the education of the chief of one of our branches. The chief is already attending school and has submitted a request for payment. There is no contract yet written; should we make any payment without a valid contract? How will this education benefit affect the volunteer status of the chief and what are the ramifications, if any, tax wise?What is the name of your state (only U.S. law)?

 

[pattytx]

You should definitely have some type of agreement about this, especially what you will do if the chief quits after reimbursement is made.

I believe a 1099-MISC would be called for, since he is not an employee.