Thank you all for providing your input and some logical steps that we can take. We have an accountant now that will be handling this for us. It is still not yet resolved, but hopefully we will have an answer soon.
For future practices, we will have a contract signed and truly specify how these situations will be handled. In that way, nobody has any reason to expect different treatment. It is hard when a new board comes on and inherets already established practices....whether right or wrong.
Careful--there are I-9 forms and W-9 forms. I-9 forms go to employees; they are immigration related forms from the Department of Homeland Security. W-9 forms are IRS forms that would go to independent contractors. Shawn asked about I-9 forms; I think Tim meant I-9 forms in his answer, but typed W-9.
Shawn;129908 wrote: Wouldnt the PTO if it had employees need an EIN (Employer Id #) plus have whomever the employees are fill out I-9's, too??
The PTO likely already has an EIN, especially if it has its 501c3.
Yes, if the person is an employee he likely should have received a W-9 when he started. But his not receiving the W-9 doesn't mean he's a contractor. Could just mean he's an employee who didn't receive a W-9.
How much are you paying him? I'd be willing to bet a box of fund raising candy bars that all he cares about is cutting back his tax liability. Independent contractors pay more in taxes than employees. He's probably smarting from having to cough up a third of the money he received from you for taxes.
We've never been in this situation, but it sounds particularly complicated and has the potential for liability not typically associated with a parent group. I would definately try to keep it very simple. I would try to get it set up like mum suggested at the end of her post above. Have the person function as a school employee and just donate enough money to the school to fund the program.
