Read the instructor tax report (1099-NEC)

What each column means, and why the 1099 flag can fire on an amount larger than an instructor's class earnings.

ForOwnerManager
1

Open the report

Go to Instructors → Tax Report.

2

Pick the tax year

Choose the year from the Year selector. The current year and the four before it are available.

3

Read the 1099-NEC column

It says "Required" for any instructor whose Total Payout for the year reached $600.

4

Hand the figures to your accountant

Use Download PDF. The PDF carries the same numbers as the screen, plus each instructor's email.

Limits
  • • This report identifies who meets the IRS threshold. It does not prepare or file a 1099-NEC, and it is not tax advice.
  • • It only covers money Klasly paid an instructor. Anything you paid them outside Klasly is not here and still counts toward their $600.
  • • Pending, processing and failed payouts are excluded — only completed ones count, because the instructor was never paid on the others.
  • • Owners always have access. A manager needs either the Instructors permission or the Payments permission.
  • • The report is only available when the Tax Report feature is turned on for your studio.
  • • The 1099-NEC is a United States form, so the report is for US studios only. A studio whose Stripe account is in another country does not have it.
Tips
  • • Txns counts the payments behind the total — class earnings plus pass-pool distributions — not the number of classes taught.
  • • The year runs on your studio's timezone, so a payment taken late on December 31 stays in that year.
More detail

Instructors can be paid two ways, and the 1099 has to count both. Earnings is what they were paid per booking. Pass Pool is what they were paid out of shared pass revenue, which is recorded separately. Total Payout is the two added together, and it is the only figure the $600 threshold is judged on.

That is why a row can be flagged when its Earnings look too small: $420 in class earnings plus $300 from the pass pool is $720 reportable, so the flag says Required. The Pass Pool column is on screen precisely so that gap is never invisible. The summary card works the same way — Reportable Payouts is the combined studio-wide total, with the earnings and pass-pool split shown underneath.

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