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Form 1099

What does a 1099 report? A 1099 is used to report payments made to independent contractors for purchased services, such as choreographers, face painters, petting zoos, DJ’s, etc.  A 1099 is also used to report payments made for rentals, such as equipment rentals. 

The form 1099-MISC is an information return used to help businesses/individuals accurately report their income on their tax returns and provides a mechanism for the IRS to ensure that the income was properly reported.  New for 2020, the 1099-MISC will only be used to report rental payments, and a new form, the 1099-NEC, will actually be used to report “non-employee compensation”, such as what you pay for purchased services.  You will still report both types of payments to the CSB; the CSB will determine which type of form to issue. 

Who does the CSB issue 1099’s to? Per the Internal Revenue Service, the CSB is required to issue 1099s to vendors which are established as Individuals, Sole Proprietors, Single-member Limited Liability Companies (LLCs) and unincorporated Partnerships.  We do not send 1099s to corporations that are designated as S Corporations or C Corporations.  Likewise, we do not send 1099s to LLCs that are treated as S Corporations or C Corporations or Partnerships. 

How do I know what type of business a vendor is? You must obtain a Form W-9 “Request for Taxpayer Identification Number and Certification” from all vendors you are going to pay for purchased services or equipment rentals.  The vendor completes the W-9 and indicates their name shown on their tax return, their business name (if different from that which they use on the tax return), the federal tax classification (i.e, the “type” of business or company they are), their address, their tax id number, and a few other things. 

You will only need to report payments made to vendors which check the Individual/sole proprietor or single-member LLC box OR the partnership box in Line 3.  The diagram below shows both applicable boxes checked for your reference, but a vendor would actually choose only one box from the entire Line 3 options.

What if I rent equipment (like a bounce house or other inflatable) from a company that is a C-corporation?  Do I report the payment as a rental? No.  Even though you paid for a rental, you do not report the payment because the company is a corporation.  You only need to report payments made to Individual/sole proprietors, single-member LLCs or partnerships.   

What if I make a payment for a DJ to an LLC that is classified as an S Corporation?  Should that be reported as a payment to a non-employee for a purchased service? No.  Once again, even though you are paying for a purchased service that might otherwise require a 1099, this DJ works for an LLC classified as an S Corporation.  That classification eliminates the need to issue a 1099 to this vendor. 

My PTO is buying t-shirts for $800 from a vendor that is a sole proprietor.  Should that be reported for 1099 purposes? No.  You are not paying for a purchased service or equipment rental.  The amount of the purchase and the fact that the vendor is a sole proprietor is irrelevant because you are buying items and not paying for services or equipment rental. 

My booster club is paying to have the baseball dugout repainted.  The painter provided a quote and invoice that is all-inclusive of paint, supplies and labor.  The painter is a sole proprietor.  Should that be reported for 1099 purposes? Yes.  The painter is a sole proprietor and is providing a contracted service, both of which are criteria for 1099 issuance.  The full amount of the invoice would be reported. 

Using the same example above, what if the painter provides a bill that breaks out the labor cost separate from the paint and supplies? In this scenario, the only amount to report for the vendor is the amount for the labor.  The paint and supplies cost are not reportable.  Since the painter split the costs out on the invoice, you are obligated to report only the labor and not the full cost for the job. 

I thought 1099s were issued only if the amount paid is $600 or more for services or rentals.  I only paid a qualified vendor $249.  Do I have to report this? Yes, you must report amounts paid to qualified vendors (Individual/sole proprietors, single-member LLCs or partnerships), regardless of the amount your PTO or booster group paid.  The information is required for aggregate calculations by CSB Administration, meaning that the CSB will tally ALL payments made to a vendor to determine if the $600 threshold is met and a 1099 must be issued. 

Where do I find the template, so I can begin tracking information now, rather than waiting until the last minute next January? Navigate to the Forms and Documents page on the Chandler School Booster website at https://www.chandlerschoolboosters.org/taxes/.  Alternatively, go to Chandler School Booster website: www.chandlerschoolboosters.org. Once at the home page, click on MENU at the top of the page to access the menu options.  On the Menu screen, select Forms and Documents.   

On the left side of the screen, select 1099 Instructions to view or download instructions for completing the 1099 template. Select 1099 Template to download the template and begin entering the required information.  At this time, you may disregard the reference to 2019; the template and instructions are not anticipated to change for 2019.  The website link and document titles will be updated at a later time. 

Will I be required to submit a copies of the Form W-9 that I obtain from vendors? Yes, new in 2020 is a requirement to submit copies of the W-9s you obtain from vendors.  Please save the W-9s throughout the year and be prepared to scan and email them at the time the template is submitted next January. 

MidFirst Banking & RunPTO

Important Documents

MidFirst Banking Account Log In

MidFirst Banking
Set up/Transitioning accounts/Debit Cards/Fees

Log In to your RunPTO Account

RunPTO Knowledge Base

Still Need Help? Contact us using the MidFirst/RunPTO Help Ticket.
This form will help you submit a ticket to a CSB team member who can help you with questions or problems related to MidFirst Banking and getting access to and setting up RunPTO. Please try to contact the bank for most daily banking activities first or try to access the RunPTO Knowledge Base before asking for help here. You should expect a response from one of us within 24 to 48 hours. 

Stage one document
Implementing the Board Chair/Committee Directories and Accounting Functions

CSB Questions

What kind of training can we expect on RunPTO in the future?

Just to name a few:  Banking, Run PTO, Fundraising…


MidFirst Questions

How do I get online access to my account?

You MUST be a signer on the account.  Typically access is given to the club treasurer, although an additional online user may be requested.  Online access may be requested by contacting banking@chandlerschoolboosters.org.  Please specify your name, officer position and club name in your request.   

How do we get the Business Company ID information in order to use the MidFirst online banking?  

Business Company ID #2710845

How do we handle coin deposits paid for by the kids?

At this time, the branches are only accepting rolled coins.

Minimal loose coin is acceptable…. less than $5.
Coin must be rolled before stepping into the branch for the deposit.
Tellers are not responsible for assisting in rolling your coin for/with you

Are there multiple MidFirst locations that we can use?

N Val Vista & E Baseline
3631 E Baseline Rd., Gilbert, AZ 85234
P: 480-926-2265

N Cooper & W Ray
760 W Ray Rd, Gilbert, AZ 85233
P: 480-755-0974

S Gilbert & E Chandler Heights
4900 S. Gilbert Rd., Chandler, AZ 85233
P: 480-755-0962

SanTan Village & S Market
2849 S Market St., Gilbert, AZ 85295
P:  480-755-0952

S Power & E Rittenhouse
7305 S Power Rd, Queen Creek, AZ 85142
P:  480-755-0949

Can we deposit checks from the mobile app? 

Yes!  Need to make sure you are in the Business app.  MidFirst Business Mobile app

Which board members are allowed to be signers? 

President, Vice President, Treasurer, and or Secretary.  2 required, 3 preferred

Can we activate the cards over the phone?

Yes. To activate a card over the phone they will need to call from their phone number on file, and type in the last 4 of CSB’s EIN (1830). They will then be prompted to set up a 4 digit pin.

What are the fees that MidFirst charges?

Account Maintenance (monthly) ...................................  No charge   
200 Transactions included per month ............................. No charge 
Excess Transactions if more than 200 Transactions ........ 0.35 each   
Cash Deposited if more than 12,500/cycle................... 2.00/1,000.00   
eStatement/Paper Statement  ........................................ No charge   
          Includes Checks/Debits, Deposits/Credits, & Deposited Item
Stop Payment – Online ................................................... 17.00 each 


RunPTO Questions

Why haven't I received my RunPTO login information?

The president receives the initial email to set up the RunPTO account.

If you are the president and still have not received your sign up email, it is possible that you will need to update your CSB registration information. CSB Registration. Introduction emails will only be sent to the presidents of the club.

Who receives the initial email to set up the RunPTO account?

The president receives the initial email to set up the RunPTO account. If you are the president and still have not received your sign up email, it is possible that you will need to update your CSB registration information. CSB Registration. Introduction emails will only be sent to the presidents of the club.

I've started implementing RunPTO and I might want to reset my system. Is it possible to do a hard reset?

Yes. There might be other alternatives, in either case contact: runptohelp@chandlerschoolboosters.org

What is the first thing I do after receiving my initial email on RunPTO?

Set up your board members and send emails to each member. Add Board members. Add users, which will send emails to each user that you wish to have access to using RunPTO. The President and Treasurer have the primary responsibility of setting up RunPTO.  Please see the Stage 1 document to aid in your setup process. 

Why can’t we start at the beginning of the new school year?

RunPTO will save hundreds of hours in collecting, auditing and correcting the spreadsheet information system previously used.

Will you still accept the previous spreadsheets that have been used in the past years?

No.

How is stripe set up for credit card transactions through RunPTO?

There is a knowledge base tutorial that walks you through the stripe set up. Here is the link. RunPTO Stripe set up.

When do we need to have these items completed for implementing RunPTO?

March 31st – Stage One President Tasks
Enter the board and chair directory information
Create the Committee Directory


April 30th- Stage One Treasurer Tasks

Enter the opening balance of MidFirst Bank account
Enter outstanding checks payable
Enter net assets opening balance
Enter budget amounts
Enter withdrawals (2 options for doing this.)
Enter any transfers and
Reconcile the bank account.

Please see this RunPTO Phase 1 document for the details involved in these tasks.

What do we do if we have a different accounting year?

All members have the same accounting year. July 1st – June 30th


Payment Systems

Are there fees for using Stripe?

Yes, 2.9% + 30¢ per successful card charge. You are not limited in the method that you choose to collect payments.

What do you recommend for members that operate concessions for payment systems?

Currently we are not making a recommendation for fee collection systems for concessions. Continue to use what works for you until more information is gathered from concessions running members.