Paying and Reporting of Workers (District Employees or Others)

Any individual, including a District employee,who is hired by the Booster Club must be paid directly by the Booster Club and not through the District. There are many technical and legal issues that arise if they are paid by the District. These issues include overtime pay; use of weighted average hourly rates; payment of TRS, taxes, and other benefits; and the advancing of district funds that is prohibited by law.

In some situations, Booster Clubs that hold events at district facilities may be charged for staff that must be on hand for the event or to clean up after an event. The pay appropriately is done through the District through the facilities use charges. These employees are doing work for the District and not the Booster Club.

Remember that federal law requires that a Booster Club paying $600 or more to an individual during any calendar year must account for this income through the issuance of a 1099 form. This includes an individual who is paid $600 or more for “cultural arts events.” The Booster Club will need to get social security numbers from all workers. This can be done by having them complete a W-9 form. It is best to have the W-9 completed before paying the worker.

Also remember that the Booster Club is responsible for its volunteers and employees during Booster Club events or activities, including injury or theft. District employees cannot be hired by the Booster Club or parent organization to have control or signature authority over the parent organization’s funds, including petty cash or miscellaneous discretionary funds. District employees must not serve as the Treasurer, fundraising chairperson, nor serve in any capacity over the organization’s financial affairs, including an authorized signer on the bank account.