Independent Contractor
| 1099 QuickLinks |
|---|
| What is a 1099? |
| Who is an Independent Contractor? |
| Paid Services for AYSO |
| 1099 Reporting |
| Completing the 1099 Template |
| Setting up QuickBooks for 1099 Reporting |
Many of the vendors used by AYSO are corporations, like American Soccer Company (Score), Sterling, or Home Depot. These types of vendors do not require a 1099 at the end of the year. However, often, our Sections, Areas and Regions might choose to hire an individual or smaller business. These types of vendors are what we are discussing here. The person you hire to stripe the fields or the photographer hired for picture day are often Independent Contractors and require a 1099 for payments made.
Examples of services you may have paid for
While not an exclusive list, here are typical services paid for by some Sections/ Areas/ and Regions.
What information do you need to collect from Independent Contractors
All Independent Contractors must complete a W-9 form and submit it to the Region before receiving payment for services rendered. This is necessary so that AYSO can issue a 1099 at the end of the year and is required by law.
- Vendors can complete a W-9 and provide to you directly, using this form from the IRS.
- Alternatively, you can reach out to Finance@AYSO.org and request that we send the vendor a W-9 via Docusign for electronic signature. Please include your S/A/R information, the name of the vendor, their email address and their phone number so that we can reach out to them directly. Once signed, you will receive a copy via Docusign for your records.
- Completed W-9 forms should be uploaded to QuickBooks and attached to the Vendor record.
Additional information on 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 across the entire AYSO organization.
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
