For those of you who may have received a 1099 from ArbiterPay, but didn't make over $600 with any given school, there may be confusion as to why a 1099 was issued. The option for ArbiterPay to issue 1099s on behalf of the schools or assigning assocations is something that each payor must opt in to.
If you have any questions or concerns about this process, please consult the FAQs below. If you have any questions, or need additional information, feel free to Submit a Request, and our customer support staff will be happy to help you out.
The 1099-MISC Form is an Internal Revenue Service (IRS) tax return document used to report payments made to independent contractors during the calendar year. In general, a 1099 can be considered as an independent contractor’s version of a W-2 tax form. All officials that we deal with are considered independent contractors (non-employees). The IRS only requires payors (assigners, ArbiterPay, schools, etc.) to issue a 1099 form if the contractor earned over $600. Some payors choose to report all monies paid to contractors, even if it does not pass the $600 threshold.
No. It is not our place to care or know how officials file their taxes. That is their business and we hope they pay as few taxes as is legally required. However, as a company, we also can’t do anything remotely close to assisting someone in preventing earnings from being reported.
ArbiterPay offers paying administrators and schools to issue payments under ArbiterPay’s Tax Identification Number (TIN) as an upgraded service for using our software. For any payors who opt in, ArbiterPay is then responsible for generating and disbursing 1099 forms for officials who received payments under our TIN. It is a school-by-school (or association-by-association) offer, and some payors may choose to issue payments under their own TIN, and retain the responsibility for issuing 1099s.
When an official has earned over $600 from any combinations of payors that have opted-in for ArbiterPay to issue their 1099, we combine all qualified payments into one total amount, and send a single 1099 from ArbiterPay to the official.
The IRS is not concerned about who reports money earned by independent contractors, but they do care that the money is reported. There is no legal right required for ArbiterPay to issue the 1099s instead of paying administrators, although the IRS has added language in recent years that not only allows, but requires third-party payment platforms such as ArbiterPay to report 1099 earnings under certain circumstances.
Yes. The requirement to report 1099 earnings exceeding the $600 threshold is for the paying entity only. Independent contractors are required to report all earnings, regardless of the amount. Officials can complete a Schedule C with their taxes to itemize all the expenses they incurred as officials (miles traveled, registration and assigning fees, etc.). Expenses are deductible from your total taxable income. For more information on this, read the official IRS page on Reporting Miscellaneous Income
Officials can navigate to their Payments tab, and click on the 1099s sub-tab to view their 1099s. To print out the IRS form, click on the printer icon. Click Here for more detailed information on where to find the 1099 form.
On the 1099 tab, officials can click on the “$” icon to see a breakdown of each payment that makes us the 1099 total amount. Each payment will list who the payor is, and when the payment was made in ArbiterPay.