Offering after school classes and activities can be an excellent fundraiser for the PTA that also provides a resource for families that need after school care and teachers that would like additional income.
Please see our FAQs for information about Facility Request forms to support your After School Programs.
Tax & Financial Obligations
After School classes do create new financial and tax obligations for your PTA, if you are splitting the income (under a pre-arranged ratio) with teachers, staff members or parents. Here are a few things you need to remember:
When you pay someone more than $600 for a service in a CALENDAR year (not the PTA fiscal year) you must report that income to the IRS before January 30th of each year.
Reporting income to the IRS means that you will need to request that your teachers fill out a W9 form, which your Treasurer will use to issue them a 1099-MISC AND also report the 1099-MISC filing to the IRS.
Ensure that your parents acknowledge that they, not the school or the PTA, are responsible for telling the After School instructor about any medical needs their student may have.
Please educate yourselves carefully to ensure you have good record keeping in place to safeguard the privacy of the W2s. Also because you will issue a 1099-MISC based on a calendar year, you could be dealing with the expenses from two different Treasurers. It is critical that your Treasurers have excellent record keeping and transition plans in place. Please also ensure that your Audit committee knows about and sees your 1099-MISCs as part of the annual Audit.
Consider adding the roles/responsibilities of running an after school program (and associated tax impacts) to your local unit standing rules.
We do not endorse or support these companies, but we know that many of you are using them and list them here for your reference. If you have used a good company, let us know so we can add it to the list!
The Hunt District PTA makes no endorsement of any of the businesses or companies included on this website and no warranty is implied or expressed by any reference to businesses or companies. View our full disclaimer.
Hunt District PTA - Serving Clarke, Frederick, Loudoun & Warren Counties & Winchester City in Virginia