Does 6crickets provide 1099 tax forms to school and enrichment providers?

6crickets is in no position to offer tax advice. Nevertheless, we are happy to share our learnings with you in the form of knowledge sharing. We recommend both you and your providers/instructors to get tax advice from professional tax advisors as needed. 

Schools and enrichment providers may ask if 6crickets provides 1099-misc forms. The enrichment programs may have collected the payments from parents in the past and then distributed the fees to the class providers. Since the schools/enrichment programs collected the money for the providers they’d then be responsible for providing 1099-misc. You keep this structure if you decide to set up your own Stripe account on the provider profile and then pay your class providers and instructors outside of 6crickets. 

However, if your class providers set up their own Stripe account on their provider profile, neither 6crickets nor you are required to provide a 1099-misc. The reason is that parents' payments did NOT go through schools' nor 6crickets' bank account. Instead, parents' payments went directly to the providers' accounts. So, schools did not pay the providers, nor did 6crickets. Therefore, neither 6crickets nor schools owe providers the 1099-misc forms, based on the IRS's definition of 1099-misc. Here is another article describing 1099-misc.

Instead, each provider would obtain a 1099-K from their own Stripe account directly. If they have processed more than $20,000 in gross volume and more than 200 charges in one fiscal year by January 31, Stripe is providing the 1099-K for them and Stripe will send an email announcement as soon as it becomes available. If they processed below the threshold, Stripe won’t be generating a 1099-K for the year in question. The provider can still quickly export the same information from their Stripe Dashboard to report their 1099 income on their tax returns. More information can be found in the Stripe article:

1099-K forms issued by Stripe.

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