A general rule is that anyone who performs services for your organization is your employee if you can control what will be done and how it will be done. The nonprofit should maintain an accurate and current record of employees. If the organization pays an individual more than $100.00 during the year, then that person is an employee and Medicare and Social Security taxes (FICA) must be withheld and a Form W-2 must be issued at the end of the year. Employers must withhold the employee’s share and pay their matching share of FICA for employees. Employers cannot classify employees as self-employed to avoid paying FICA.