1099 User Guide
All 1099 Reporting Templates are due to AYSO office by January 10th of each year and can be submitted via email to firstname.lastname@example.org. Please include the Excel attachment or link to secured document. Files received after January 10th which cause a late filing could be assessed $100 per each 1099. This is a penalty imposed by the IRS that we do pass on to the Region.
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-NEC 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
Information needed from Independent Contractors
All Independent contractors must complete a W-9 form and submit it to the Region. This is necessary so that AYSO can issue a 1099 at the end of the year and is required by law.
All W-9's should be submitted to AYSO office along with the Reporting Template by the due date. They only needed to be submitted the first year in which the vendor is paid and or if there is an address or other informational change.
- 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 and W9s 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.
Completing the 1099 Reporting Template
Run a report in your accounting software on all payments made to Independent Contractors for the calendar year. Note, this is calendar year, not fiscal year. Think tax year January through December. See below for additional guidance.
User guide with screen shots click here to be redirected. https://aysovolunteers.org/for-1099-compliance/
Even though Quickbooks may offer to file 1099's for you, please do not use this service yet. We are looking into this as a future option. AYSO office will file all 1099's on the Region's behalf and ensure they are sent to each recipient.
Please watch this short 2 minute video to guide you through the process of exporting the report. When you reach the 2:30 mark, there will be a button on the top right of the screen called "Print Information Sheet." Stop here.
Upon following the steps from the video in your own QuickBooks account, click the Print Information Sheet button to export the data into an Excel file. Copy and paste the information into our template, if possible. We realized you may not have access to Excel. Try using Google Sheets if possible. See screen shot below.
If you have any further questions, please contact email@example.com.