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Originally Posted by Kelvin green
Even sole proprietorships get EIN's so they dont have to provide SSN's to the contracting organizations. If the City/league whatever pays money they may have to do a 1099 for ain individual is a sole proprietorship
Official's are independent contractors but you are required to get a W-9 or equivalent. They have to provide a SSN (that's what the W-9 is for) if not then you are required to withold money. Even if you pay them less than the $600 threshold for reporting on a 1099.
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Kevin, this is simply not true. Now any organization that is paying out money will have to report those expenses in their tax reports, but the independent contractor does not have to fill out a W-9. I have been sent forms from schools but I do not fill them out. I file my own information for my tax purposes.
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Originally Posted by Kelvin green
In Utah and in many other states even though the person is an independent contractor, the contractor is required to provide a certificate that they are exempt as self employed. (Although not enforced much..) I had a municipality and a restaurant group that rquired the exemption certificates or they would not hire us. I never said he had to pay WC on the contractor but may have to have the contarctor provide something
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This is not true in my state. We only have to file income that we receive. We do not have to declare being self-employed, because people might have other jobs or other income. Independent contractor status is a state law for the most part. So every state might have different requirements and different laws that regulate this. Our State Association (The IHSA) cannot even set up an evaluator program for playoff purposes unless they want to violate independent contractor law. This would make all officials employees of the IHSA and things like benefits and insurance would be the responsibility of the IHSA. This is why I stated this issue is not a universal issue across the board. What might be a law in one state might not apply at all in another state. Not all have the same laws about independent contractors and not all states have the same tax laws. Texas has no income tax, so how you are taxed and who taxes you will vary from one place to another.
Also none of the information you are talking about even applies to where I live. Associations are there for training, they are not there to pay officials and assign officials to work games. The money is taken in to give directly back to the officials that pay dues. Associations do not have to file taxes as cooperation and often have "non for profit" status" which is a state law.
Peace