The purpose of this page is to enable members to ask and answer art related questions within our association. To ask a new question, just click on the "?" button, fill in the email with your question and then check back in a day or two and hopefully someone will have an answer to share with you. To reply to a question, just click on the "Reply" button just below the question. This will pop up an email message ready for you to fill in your answer.
YES, there are ways to do this faster but they're also at an additional expense so we'll struggle along with this method for a while and maybe someday we'll re-evaluate if an additional expense would be worthwhile. Maybe we all KNOW EVERYTHING already and have no questions and no need for a page like this.
Q: I'd appreciate a simple explanation regarding the 1099 tax forms and taxes. Does the SAA collect the taxes for sales through the Pickle Barn and Venues display or do members need to include tax in the prices determined?
A: The Skagit Art Association collects all taxes for the state, and file and pay them on a semi-annual basis. ( this has been set by the state, at one time we reported quarterly, at another time we reported annually, and last year they moved us semiannually. I think to make sure the Treasurer has something to do. Ha.) Thus the artist does not have to report and pay State Sales Tax on any sales made at the Pickle Barn, or any venue sales for that matter. The Treasurer at the time of mailing out the checks to the individual artists deducts the commission fee ( 20% Pickle Barn, 10% venue, and 15% Skagit Valley Hospital Guild venue sales), accumulates these monies and pays them on the semi annual report mentioned above.
Federal law requires that anyone making more than $600.00 in sales, in this case PB sales and/or Venue sales , through the handling by SAA is to have their total monies received reported to the IRS and a Form 1099-MISC issued to the artist, and the original sent to the IRS . These forms must be mailed to the artists by the treasurer by the 31st of January, each year.
To RECAP: an artist gets a Form 1099-MISC if through SAA they have had total sales of excess of $600.00 in the calendar year, as required by IRS. Those sales are the only ones which have been reported to IRS, no other sales below a total of $600 in a calendar year are reported.
Larry Brooks (SAA Treasurer)