A FEW REPORTING REQUIREMENTS FOR EMPLOYEES/INDEPENDENT CONTRACTORS
Submitted by Ira Weinreb
I hope that everyone had a wonderful holiday. I want to say a few words about some upcoming reporting requirements regarding employees/independent contractors that your Unit may have hired.
1) Workers’ Compensation Annual Payroll Reports
EVERY PTA Unit, Council, and District in California MUST submit a Workers’ Compensation Annual Payroll Report, without exception. This must be done no later than January 31, 2025, covering the year January 5, 2024, through January 4, 2025 (but don’t wait – you should do it NOW!). There are two ways that this can be done:
First, there is an online system for filing your Report, which is the preferred method. You can file your Report at: https://aim-companies.com/capta-wcreporting/
Second, you can file a paper form instead of using the online system (but you really should try to use the online system instead). If you use a paper form, it must be mailed directly to AIM, the PTA’s insurance broker (their address is on the form), and must be postmarked by the January 31 deadline. Forms are available in English and in Spanish, and can be downloaded here: https://capta.org/pta-leaders/run-your-pta/insurance/
The Report asks whether your Unit paid anyone directly for their services, from 1/5/24 through 1/4/25.
For most Units, the answer will be “NO!” In that case, check the “NO ONE PAID” bubble on the online form, or check the red “no one paid” box on the paper form, sign it, and mail it by January 31. Remember, if your Unit pays money to your school to cover an employee’s salary, you do NOT list that employee (because you are not paying them directly). Similarly, payments made to companies with multiple employees, volunteers reimbursed for their expenses, students awarded scholarships, and payments made for materials or goods, are NOT reportable.
Examples of people that you WOULD list are:
- If you pay someone directly to provide childcare at your PTA meetings
- If you pay someone directly to provide tutoring or homework assistance before or after school
- If you pay someone directly to DJ at an event; etc.
- If you list anyone on the form, be sure to fill out the form completely, including whether each person carries their own workers’ compensation insurance (and you have a copy of their certificate of insurance, which you must include with the form).
You then have to add up the total amount you paid all listed employees who do NOT carry their own workers’ compensation insurance. (If they DO have their own workers’ compensation insurance, then you do not include the amount you paid them in the total on the form.)
If the total you paid the people WITHOUT their own Workers’ Compensation is $1,000 or less, congratulations — you do not owe any money! If it is more than $1,000, then you have to subtract $1,000 and multiply the excess amount by 3% — and pay electronically or mail a check for that amount, along with the form, to AIM. Also, please upload a copy of the form to PTA-EZ for archival purposes, and please let your Council Treasurer know that you have taken care of this.
2) 1099’s and DE-542’s
If you paid any person OR unincorporated business at least $600 for services (i.e., not goods) in calendar year 2024, you need to prepare a 1099-NEC for them, which you must mail to them no later than January 31, and which you also need to file with the IRS. So, for example, if you hired “We Got the Beat DJ Service” for a dance and paid them $1,000, you need to do this. If, on the other hand, you hired “We Got the Beat DJ Service, Inc.” (a corporation), you do not. You can easily and inexpensively e-file the 1099-NEC here: https://www.tax2efile.com/efile-1099-form/form-1099-nec/
For individuals that you paid at least $600 for services as independent contractors, you also should have filed an EDD DE-542 Report within 20 days of either making such payments or entering into a contract to do so.
If you have any questions, please feel free to ask me! Ira Weinreb —