I work for a public school and was given a 1099 that was marked "nonemployee." Is that correct?

by Anthony R. Deutsch, CPA | Feb 07, 2018

I am the athletic secretary for a public school and a coach. Last year they decided to pay us out of accounts payable. They sent us a 1099 marked “nonemployee,” which I was told is like I own a business. I just got the another 1099 for the rest of the money from last year, and they did the same thing. Does it have to be marked like that? I am very concerned.

If you are an employee of the public school, all compensation for any services provided to the employer should be reported though the normal payroll and reported on a W-2 form. It sounds like that was not done correctly for some reason. If for some reason additional payments for services provided are not reported through payroll, then the reporting as “nonemployee compensation” in Box 7 of Form 1099-MISC would be done. I would consult a CPA to ensure your situation gets resolved.

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Answered by: Anthony R. Deutsch, CPA, is a shareholder with Cocannon, Miller & Co. PC in Bethlehem, Pa.

The responses are based on the limited information provided by the questioner and are intended to provide general information, not specific accounting or tax advice. The ideas are not intended or written to be used and cannot be used for the purpose of avoiding or evading taxes or penalties under the IRS code or regulations. Views expressed do not imply an opinion of the PICPA, its officers, directors, employees, or members.
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