volunteer org 1099's

[bstaxes]

The members volunteer their time for this org. 2 members get a small so called salary. Some members get a check for convention.

Problem neither of the numbers are more than $600 for a 1099, but the so called salary and convention money does total more than $600. It is called salary for the state reports which must be filled every year.

Now would you give them a 1099? I am thinking the convention money would be reimbursement for money spent and no 1099. The salary is just a small amount of money for the 2 officers to do extra work and attend meetings. I am also thinking no 1099.

Any suggestions would be helpful. I am sorry to ask a question I should know the answer to but the side effects of the cancer meds are really playing havoc with my brain.

[grandmabee]

if it is salary its w-2 if its just re-imbursed expenses it not reported. Are they getting paid for hours worked or mileage or what?

[bstaxes]

It's not hours worked. It is a few bucks to take the office. They use it to put gas in their vehicles.

[jainen]

>>It is called salary for the state reports <<

Sounds like wages to me. "Take the office"? The IRS virtually NEVER allows clerical workers to be treated as independent contractors. This is still a HUGE risk, so save your clients a whole lot of grief--have them comply with minimum wage, workers comp, and payroll tax laws.