AP Badge #09 IRS 1099 Reporting-AP Badge #9 Recording

Video Transcription

Video Summary

Holly Burlingame’s WASBO Accounts Payable Batch 9 explains school district 1099 reporting requirements and how to set vendors up correctly to avoid IRS errors.<br /><br />The training covers collecting vendor data via Form W‑9 or a district “substitute W‑9,” emphasizing legal name, address, entity type, and TIN (SSN or EIN). Requiring W‑9s helps prevent ghost vendors, determines 1099 eligibility, and reduces name/TIN mismatches. Districts should generally avoid paying before receiving a completed W‑9; otherwise backup withholding may apply. She recommends maintaining a clean vendor database (ideally one vendor per TIN) and discusses IRS TIN matching.<br /><br />Two main forms are used: 1099‑NEC for nonemployee compensation (including attorney fees) of $600+ per calendar year; and 1099‑MISC for items such as rents, medical/healthcare payments, other income, and royalties ($10+). Credit card/p‑card payments are excluded because processors report them.<br /><br />Attorney reporting is complex: attorney fees go on 1099‑NEC, while gross proceeds/settlement-related payments to attorneys are reported separately (and claimants may also require reporting). Medical/healthcare payments are reportable even when paid to corporations.<br /><br />The session also explains backup withholding (24%), filing deadlines and e‑filing thresholds, corrections, penalties, and how to request an extension.

Keywords

1099 reporting requirements

WASBO Accounts Payable training

vendor setup and maintenance

Form W-9 collection

TIN matching (SSN/EIN)

backup withholding 24%

1099-NEC nonemployee compensation

1099-MISC rents and medical payments

attorney fee and settlement reporting