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Originally Posted by Welpe
That is absolutely true and if legal, I have no problem with it.
What Camron is saying is that there are officials who will stop taking assignments from a certain entity if they know they are close to hitting $600 which will require a 1099 to be generated by law. They are doing this to reduce the actual records of the income they make because they more than likely aren't claiming what isn't reported on a 1099.
Remember, regardless of whether a 1099 is issued or not, you're legally required to claim that income. The $600 threshold was implemented to reduce the paperwork burden on entities paying small sums infrequently to independent contractors.
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OK, but is that not their choice? BTW, most schools I have to file paper work no matter what I am getting paid for a single contest. So it does not matter if I get to the $600 or not, I still have money paid on file by that school and I would suspect reported properly. The $600 is only required by law, for that particular amount if they pay you. A W9 might be asked of you by someone that pays you money anyway. I cannot even get paid in most cases if I do not have one on file at most school districts.
Quote:
Originally Posted by Welpe
TI can see that if you're paid by each school. Here we are paid by the district for public school games. I'm usually good for 1-2 1099s a year in the districts I work the most.
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Well schools are under the jurisdiction of the district. And each district decides how each school pays out money. Many the school district pays through the district office and does not come directly from HS A as an example. And once again, it is rare that I would work that much in one school or district where it would matter. But that still means I would have to file paperwork before I get paid. Half the time we do not see checks until weeks or in some cases months later after the contest. So someone is making us jump through some hoops to get money.
My point is ultimately that is the choice of each individual how they do their business. And many have been audited as a result. Mostly those that pay out money have run into that, rather than just a working official.
Peace