(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.