Preparing For The End Of 2024 - There are some important due dates coming up for your local as we near the end of 2024, and there are some things you can be doing now to prepare for these due dates.
NYSUT Locals and Retiree Councils must complete the IRS Form 1099-NEC when stipends to local union officials and others total $600 or more in the calendar year.
Payments of $600 or more made to individuals, independent contractors, partnerships or any other entity (excluding corporations) must be reported to the IRS. These payments include but are not limited to:
- Payments for professional services (includes legal, accounting and arbitration services).
- Payments made to local members for which no support for the reimbursement of
expenses has been provided.
- Commissions, fees and other compensation to non-employees.
If your local waives the membership dues of a union official, this amount is considered compensation and must also be included in the calculation of the payments to the individual and reported on the 1099-NEC. For locals renting a union office, rents (when paid to anyone other than a corporation or rental agent) are still reportable on Form 1099-MISC.
Note: If your local union utilizes a payroll system to pay officer stipends and W-2’s are issued at year-end, then the 1099-NEC is not necessary for these payments to officers.
What can you do now? Before the end of the year, go through your financial records to determine who will have been paid $600 or more by 12/31 and verify their information. IRS Form W-9 can be used to request the official name, address, and taxpayer identification number (Social Security Number or Employer Identification Number). You can also order the forms (through the IRS directly by clicking this link, or from an office supply store, or request them from NYSUT Accounting) so that you have them ready to complete and mail by the end of January. The 1099-NEC must be provided to the recipient by January 31, 2025 and a copy sent to the IRS with transmittal Form 1096 by January 31, 2025. No copy is required to be sent to the NYS Department of Taxation and Finance.
Should you have questions on this very important annual filing, contact NYSUT Accounting at (800) 342-9810 and ask for Amy Ethier (or email Amy.Ethier@nysut.org )