1099 User Guide

1099 Compliance Program

As with many other tax regulations, there are penalties assessed by the IRS for non-compliance. This program addresses the issue of compliance with federal tax filing requirements for Form 1099-MISC, or “1099’s” as they are commonly called. AYSO could potentially face significant penalties for not filing the required 1099’s. This program will ensure that Sections, Areas, Regions along with the AYSO National Office are compliant with the 1099 filing regulations.

What is a “1099”?

A 1099 is an annual form AYSO mails to vendors who are independent contractors that contains information on how much money we paid to them within a calendar year.  AYSO is required to send a copy of this form to the IRS. Not every vendor needs to receive a 1099. Only vendors considered independent contractors who were paid more than $600 in a single calendar year require a 1099.

However, many Regions use the same vendor, anyone who potentially could require a 1099 should submit information on the 1099 worksheet. If after the Region’s report the vendor does not meet the $600 threshold, a 1099 will not be issued.

Who is an independent contractor?

An independent contractor is someone who maintains an independent business and is available for hire to provide services to the public. When someone is an independent contractor, (1) they are not on the AYSO payroll, (2) taxes are not withheld from their payments and (3) their income is reported to the IRS as non-employee compensation on Form 1099-MISC if payments exceed $600 in a calendar year.

Below are some general guidelines to help determine who may be an independent contractor:

• Performs services for multiple customers
• Sets own hours
• Determines own price for contracted services
• Not eligible for employee benefits
• Provides own tools and equipment to complete job
• Supplies own materials needed to do job
• Personally liable for errors and/or accidents
• Files self-employment taxes and receives a Form 1099-MISC
• Has the right to hire and fire workers
• Must legally complete each contract

The following services used by AYSO Sections, Areas and Regions are typically provided by vendors that may be classified as independent contractors:

• Website development
• Third party registration system development and maintenance
• Bookkeeping services
• Security guards
• Legal fees
• Payments to trainers
• Groundskeepers/ field maintenance

   Download 1099 Reporting Template