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
- Each region will be responsible for any disputes relating to vendors receiving a 1099 and the amount reported.
- If a vendor dispute issue arises, regions will have the responsibility to search for and provide appropriate backup to the IRS for amounts they reported.
1099 Reporting to AYSO Office
All SARs must send their worksheets by January 10th every year to provide the AYSO office time to file with the IRS. Filing 1099s for SARs is included as part of the service the office provides. Please note a penalty of $100 for each 1099 is imposed by the IRS and passed to the SAR if a late submission causes the office to file past the due date.
Download the reporting template below and report only one line per vendor with the total amount paid. The office does not require each check paid to the vendor as in the past. Files in the wrong format will be sent back to the SAR.
If you have any further questions, please contact firstname.lastname@example.org.