1099 User Guide
All 1099 reporting templates are due to AYSO office by January 10th of each year. 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 the AYSO office does pass on to the Region.
Please send the reporting template or QuickBooks 1099 report to finance@ayso.org and include (1) the region number in the subject line of the email, (2) the Excel attachment or a link to a secured document, and (3) the W-9 for the independent contractor, if the contractor is new or the contractor's information has changed .
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”?
The IRS Form 1099-NEC 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. Our office will consolidate reports received from other Regions and if after all Region’s reports are consolidated the vendor does not meet the $600 threshold, a 1099 will not be issued.
Please note that the 1099 Compliance Program does not apply to other 1099 forms such as 1099-INT, 1099-DIV, or 1099-MISC that you may receive from banks, Square, or other vendors of financial services. Regions should ensure that all interest or other amounts stated on such forms is credited to interest income or other income in their QuickBooks account. You should not send these forms to the AYSO office.
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
- 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. More information about the Form W-9 and a link to download the Form can be found here: Collecting Vendor Information - W-9.
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.
Vendor Disputes
- 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 are required to submit their worksheets and W-9s by January 10th annually, to provide the AYSO office ample time to file with the IRS. Filing 1099s for SARs is included as part of the service the AYSO office provides.
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. The AYSO office will file all 1099's on the Region's behalf and ensure they are sent to each recipient. 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.
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.
Download the reporting template found 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 are using QuickBooks, we have a provided a step-by-step guide further below.
Download 1099 Reporting Template
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We realize you may not have access to Excel. If you cannot open the downloaded Excel file because you do not have Excel, you can open it in Google Sheets if needed to validate, but please try to send in an Excel file if possible.
QuickBooks Users
Download 1099 QuickBooks Training
Please download the training guide above to walk you through the steps of producing the 1099 report in QuickBooks.
As a QuickBooks user, you have the option to submit either the downloaded 1099 report directly from QuickBooks or complete the 1099 Template below and submit the template to the AYSO office. 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. The AYSO Finance Department will file all 1099's on the Region's behalf and ensure they are sent to each recipient.
Important, all Contractors/Vendors in QuickBooks who need a 1099, must have the "Track payments for 1099" box checked during vendor set up. Refer to the downloadable training above for help.
As a reminder, some Region's share vendors so include the total payment to all contractors regardless of amounts. The office will consolidate reports received from other Regions and if after all Region’s reports are consolidated the vendor does not meet the $600 threshold, a 1099 will not be issued.
Zipbooks Users
A user guide with screen shots is available, please click here to be redirected. https://aysovolunteers.org/for-1099-compliance/.
If you are still using Zipbooks, we would like to help migrate you to QuickBooks. QuickBooks is offered at no cost to Regions. See Transition to QuickBooks for more information or contact Finance@ayso.org to migrate over to QuickBooks Online.
Questions
If you have any further questions, please contact finance@ayso.org.
