Requirements for paying outside vendors – 1099 and W-9

Information about special requirements for payments to vendors

ILYM committees, yearly meeting Planning Groups, Stewards, and sometimes other officers are authorized to negotiate arrangements for goods and outside services on behalf of ILYM. This can include repairs, routine maintenance, and special events such as cooking or childcare for annual sessions. The Finance committee does not play a role in approving or disapproving such arrangements, but they and the Treasurer are available for providing historical information about usual and customary amounts.

IRS rules state that any person who will receive as payment for services $600 or more from ILYM in a calendar year will potentially receive a 1099 Misc Income statement (see the second page of form) in the following January. Only incorporated entities (people or businesses) are exempt from this rule. However, it is sometimes difficult to determine the incorporation status of the vendor. For example, an LLC may still receive 1099.

Unless the vendor’s bill clearly states “incorporated,” the ILYM Treasurer will send the vendor an IRS W-9 form to complete and return to the ILYM Treasurer. This form gives ILYM the information needed to determine whether the vendor should receive 1099, as well as information needed for ILYM to generate 1099 in January.

ILYM will not release payment to the vendor until the W-9 is returned, so consider giving the vendor a blank W-9 prior to or at the start of their work. If you cannot print the W-9 from this link, contact Dawn Amos to have one mailed to the vendor.

Thank you for helping ILYM stay in legal compliance with this ruling.