I can answer this question with one word:
The determination of employee/contractor status revolves around one word:
The more control a church exercises over an individual the more likely they are an employee. Conversely, the less control exercised over a worker the more likely an independent contractor relationship exists.
So if a church is paying those with the responsibility of guarding their children’s welfare as independent contractors it is as much as admitting the church is exercising little control over its childcare program. Not a good idea…
If our answers only raise more questions (which is typical for CPAs) feel free to post a question on the blog or email me at firstname.lastname@example.org