You lost me at 1099, I tend to blank out when I see numbers. Here's how we do things. I don't know the IRS terms but we have "special accounts" set up that run through the PTO. Everything is accounted for and legal. If we were going to do that we would get the money from the general account or have a special fundraiser and keep that money in the "Foriegn Language Account." To be used when needed. I don't know if you can do it that way if you are actually hiring people though. We have never done that. If it is different I'd like to know why. With all the money cuts we may be forced to do something like this.

Foreign language instructors for an extracurricular program. It is possible that they will be paid more than $600 in the course of a year.

What type of "independent contractors" are you hiring, and how much will they be paid in a calendar year?

I am a newly appointed PTO treasurer. Is the PTO responsible for issuing an IRS form 1099 to "independent contractors" who come into the school to perform services for the benefit of the students? The money for these services will come from PTO funds.