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Hiring demonstrators for turning clubs
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10-02-2017, 12:58 AM
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"?
VH07V
10-02-2017, 01:23 AM
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.
"the most important safety feature on any tool is the one between your ears." - Ken Vick
A wish for you all: May you keep buying green bananas. 
10-03-2017, 04:23 PM
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.
10-03-2017, 10:20 PM
(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
As of this time I am not teaching vets to turn. Also please do not send any items to me without prior notification. Thank You Everyone.
It is always the right time, to do the right thing.
10-05-2017, 03:12 PM
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
10-05-2017, 06:02 PM
(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. 
As of this time I am not teaching vets to turn. Also please do not send any items to me without prior notification. Thank You Everyone.
It is always the right time, to do the right thing.
10-11-2017, 09:27 AM
(10-02-2017, 12:58 AM)EightFingers Wrote: 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.
Jason
10-12-2017, 08:14 PM
(This post was last modified: 10-12-2017, 08:28 PM by EightFingers.)
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.
VH07V
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