1099 FAQ

Sections:

Arbiter Pay Issuing 1099s Update
FAQs
How to check if your officials/workers' SSN/EINs are unverified
Withholding Rules

Arbiter Pay Issuing 1099s Update

Beginning with tax year 2022, Arbiter Pay is required by the IRS under the American Rescue Plan Act of 2021 to issue 1099s to ALL officials and workers who have been paid $600 or more through Arbiter Pay. This means payors can no longer opt-out of Arbiter Pay issuing 1099s on their behalf.

We strongly recommend that payors no longer include Arbiter Pay payments on its 1099s to prevent double reporting.

Please keep in mind that all payors are still responsible for issuing 1099s for any payments made outside of Arbiter Pay.

FAQs:

Q: Why is Arbiter issuing 1099s for me now? 
A: The American Rescue Plan Act of 2021 included changes to 1099 reporting requirements for third-party payment settlement entities like ArbiterSports. As a result, beginning the 2022 tax year, all payments made through Arbiter Pay will be reported by Arbiter for individuals receiving over $600. 

 

Q: Is there documentation of this change that I could read? 
A: The IRS documentation outlining 2022 1099 reporting can be found here - https://www.irs.gov/pub/irs-pdf/i1099k.pdf 

Q: Is Travel included on my 1099?  
A: Yes, ArbiterSports includes travel on Officials 1099's. Officials can write off their expenses such as travel, hotel, equipment, registration fees, assigning fees, etc that they incurred for their work.

Q: I opt-out because there isn't an option to mark certain payments as "non-1099able" which leads to Arbiter over-reporting in some instances.  
A: ArbiterSports reports 1099s on the gross amount. This means that all deductions for non-1099able payments will need to be handled by the payee.

 

Q: Sometimes I pay officials/workers through Arbiter Pay, but sometimes I pay them offline (cash, check, another system). What will this change mean for me?  
A: ArbiterSports will only report income on 1099s for payments made through Arbiter Pay. If your organization pays through other methods, you will need to handle the tax process on your own. 

 

Q: Will 1099s be issued using Arbiter Pay's TIN or the school/school district’s? 
A: 1099s are issued using Arbiter Pay's TIN. 

 

Q: Do I have to change my opt-in/out status from the website or do anything else? 
A: You do not need to change anything. That old opt-in/out setting is no longer applicable since ArbiterSports is now obligated to issue 1099s for all payments made through Arbiter Pay. 

 

Q: Why are we only hearing about this now? 
A: The law change that impacted us was unclear as to which year it would begin being enforced, but the consensus nationally, and accepted by our legal counsel now, is that it is being enforced for the 2022 tax year. 

 

Q: Does ArbiterSports charge us more to issue 1099s for us? 
A: ArbiterSports does not charge for issuing 1099s.

Q: When will 1099s be issued to our officials/workers?
A: The 1099s will be available for officials and workers to download and print by mid-to-end of January.


Q: Will we receive a copy of the 1099s that are filed for our officials/workers?
A: You no longer need to worry about 1099s for payments made through Arbiter Pay. Due to security measures, we cannot share that sensitive information with payors.


Q: How will our officials/workers receive their 1099 from Arbiter?
A: Officials and workers will receive an email notification when their 1099 is available for download around mid to end of January. The email includes a unique URL for them to privately and securely download their 1099. Officials can access their 1099 directly from the Payments tab in their ArbiterSports account or by clicking on the unique URL found in the notification email. Event workers can access their 1099 via the unique URL sent to them in the notification email. All officials and workers are responsible for downloading their 1099. Officials 1099s



Q: Will Arbiter email our officials/workers a copy of their 1099 or will you send a copy in the mail?
A: Arbiter cannot email or mail a 1099 form to anyone for any reason. All officials and workers are responsible for downloading their own 1099 via the options mentioned above. If the official or worker did not receive a 1099 and they believe they should have, or if they are having trouble accessing their 1099, please have that individual contact ArbiterSports' Customer Support.


Q: What do our officials/workers do if the amount on their 1099 is incorrect?
A: If the amount on their 1099 is wrong, they will need to reach out to the school/organization (payor) that paid them and have the payor submit a correction request to ArbiterSports' Support. After the payor reaches out to Arbiter with these requests, we will make corrections and issue corrected 1099s to those payees that need them.

Arbiter CANNOT make amount corrections based on an official's request. The correction request must come from the payor.

How to check if your officials/workers' SSN/EINs are unverified

If an official/worker does not have their SSN/EIN verified

1.  Log in to your School's account (ArbiterGame) on ArbiterSports.com.
2. Select the Reports tab at the top.
3. Select 1099-Unverified SSN in the Most Used section.
4. Select the Current Tax Year.
5. Click Export to Excel.

The report will show any officials name whose SSN is not verified. This doesn't mean their SSN is incorrect but please send an email with the following link to have them ensure their SSN or EIN is correct for verification.

Link to send to Officials: https://arbitersports.force.com/officials/s/article/Officials-1099-

Withholding Rules

When you open a new account, make an investment, or begin to receive payments reported on Form 1099, the bank or other business will give you Form W-9, Request for Taxpayer Identification Number and Certification, or a similar form. You must enter your TIN on the form and, if your account or investment will earn interest or dividends, you also must certify (under penalties of perjury) that your TIN is correct and that you are not subject to backup withholding.

The payer must withhold at a flat 28% rate in the following situations:

• You do not give the payer your TIN in the required manner.
• The IRS notifies the payer that the TIN you gave is incorrect.
• You are required, but fail, to certify that you are not subject to backup withholding.
• The IRS notifies the payer to start withholding on interest or dividends because you have underreported interest or dividends on your income tax return. The IRS will do this only after it has mailed you four notices over at least a 210-day period.