Sunday, December 15, 2013

IRS 1099-Misc Due on January 31

Regardless of its tax-exempt status, a PTA may have to complete an IRS 1099-MIsc Form if it made payments of $600 or more in a calendar year (January-December) to any individual or unincorporated business as payments for services. The PTA should have all independent contractors (individuals) or businesses complete an IRS W-9 Form. The W-9 will indicate if a PTA needs to file a 1099-Misc and will also provide the information to complete the form. The completed 1099-Misc Form must be sent to the individual or business by January 31 for the preceding year. By February 28, a PTA will need to complete an IRS 1096 Transmittal Form and submit copies of all 1099s to the IRS. More information is available on the IRS website

Generally speaking, a 1099-Misc must be filled out if the person or business you paid is an independent contractor. This means your PTA contracted for a particular outcome, but did not supervise the manner and means by which it was achieved. If the person was directly supervised by the PTA, then he or she was an employee, and other requirements apply. You can obtain more information from the IRS website