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+-- Thread: Hiring demonstrators for turning clubs (/showthread.php?tid=7333684)
Hiring demonstrators for turning clubs - EightFingers - 10-02-2017
I'm wondering if you have to do a 1099 to report the demonstrator's charge to the club.
I know if you pay more than $600 of *wages* per quarter you have to file the 1099.
Question is: Are the demonstrator's "charges" considered "wages"?
RE: Hiring demonstrators for turning clubs - iclark - 10-02-2017
I have never heard of calling a speaker's fees "wages."
I think that self-employed contractor is much closer to their status.
Of course, I am just a guy on the internet.
RE: Hiring demonstrators for turning clubs - Arenablance - 10-03-2017
I did taxes for a national company with a green logo for a couple of years. The demonstrator's fees aren't wages but they are considered income that should be reported on line 20 if you are filing.
RE: Hiring demonstrators for turning clubs - Arlin Eastman - 10-03-2017
(10-03-2017, 04:23 PM)Arenablance Wrote: I did taxes for a national company with a green logo for a couple of years. The demonstrator's fees aren't wages but they are considered income that should be reported on line 20 if you are filing.
Most of the turning clubs I know are either non profit or under AAW and they are non profit
RE: Hiring demonstrators for turning clubs - Wipedout - 10-05-2017
The non profit status of the company is irrelevant. If you (meaning a company of some sort) pay someone more that $600 you need to 1099 them. Legally the person receiving the money needs to claim it regardless but most people won't without it passing the $600 level
RE: Hiring demonstrators for turning clubs - Arlin Eastman - 10-05-2017
(10-05-2017, 03:12 PM)Wipedout Wrote: The non profit status of the company is irrelevant. If you (meaning a company of some sort) pay someone more that $600 you need to 1099 them. Legally the person receiving the money needs to claim it regardless but most people won't without it passing the $600 level
OK that is nice to know about the future when we get our non profit done and in a building that the city will provide. It would be nice to have a lot of demonstrators in the future there.
RE: Hiring demonstrators for turning clubs - Jason28 - 10-11-2017
(10-02-2017, 12:58 AM)EightFingers Wrote:I'm wondering if you have to do a 1099 to report the demonstrator's charge to the club.I know if you pay more than $600 of *wages* per quarter you have to file the 1099.Question is: Are the demonstrator's "charges" considered "wages"?
My qualifications: I'm a certified bookkeeper. Several of my clients are event promoters so I deal with this exact situation on a daily basis. So, with that said...
I'm assuming your organization is registered with the state and has an EIN. If that's not the case, then I need more information to provide a helpful answer.
If the instructor is a W2 employee of your organization and collects a salary or earns an hourly wage, what they are paid is considered wages and taxes should getting taken out of their paychecks. If the instructor is not a W2 employee they are considered an independent contractor and you would issue a 1099 to them, between January 1st and 31st.
NOTE: If you pay more than $600 ANNUALLY to a contractor, you have to issue that individual a 1099. That 1099 must go to the IRS; whether or not it goes to the state is up to the state. It varies, but most states are going with the IRS rules these days.
RE: Hiring demonstrators for turning clubs - EightFingers - 10-12-2017
Jason, we are registered with the state.
Looks like you're right.
OK....I looked at the instructions for the 1099MISC and it looks like demonstrators who charge a fee will need a 1099 filled out on them. This applies even if the club is registered as a nonprofit.