Presentation on theme: "TAXABLE and Non-TAXABLE Payments"— Presentation transcript:
1 TAXABLE and Non-TAXABLE Payments Filing AnnualFormsalso information onTAXABLE and Non-TAXABLE Payments
2 Financial Officer is Responsible for the Completion and Filing of: AFGE’sAnnual Audit Certification Form 41I.R.S.’sForm 990 and 990-EZD.O.L.’sForm LM-2, LM-3, and LM-4
3 Click here to View/Download Form Annual Audit Certification - Form 41Click here to View/Download FormDue Dates: Normally 03/31(90 Days After Year End)Each local is required to conduct an audit at least once a year and make a certification using Form 41 to the National Secretary-Treasurer that such an audit has been completed.
4 Click here to View/Download Form I.R.S. 990 & 990-EZ FormsYou May Download Forms and Instructions from (click to access)IRS Forms & Publications Web SiteDue Dates: Normally 05/15(15th Day of the 5th Month after Year End)FormGross ReceiptsMore than $100,000Less than $100,000Less than $25,000File 990XFile 990 EZDo not FileClick here to View/Download Form
5 Click here to see Form Instructions at DOL Web Site LM-2, LM-3, LM-4 FormsClick here to see Form Instructions at DOL Web SiteDue Dates: Normally 03/31(90 Days After Year End)FormGross ReceiptsMore than $200,000Less than $200,000Less than $10,000LM-2XLM-3LM-4
7 1099 must be given to individuals by January 31st When a non-PAYROLL Payment Exceeds $ to an Individual for a Calendar Year, You Must Provide him/her an IRS 1099-MISC Form .Due Dates:1099 must be given to individuals by January 31stCopies of all 1099’s prepared must be filed with the I.R.S by February 28th, along with 1096 Form (Annual Summary and Transmittal of U.S. Information Returns)
8 Form 1099-MISC Boxes Must include the following: 1 6 7 &.. 14 Individual’s NameIndividual’s AddressIndividual’s Social Security NumberLocal’s Federal I.D. NumberTotal Amount Paid to Individual for the yearBoxes &.. 14Please note:Payments made for normal payroll where payroll taxes are withheld are reported on I.R.S. form W-2.
9 Form 1099-MISC $ $ $ 5500.00 Amounts paid for Rental of Office 6 Medical and health care paymentsShow Dental, Vision or Health payments that are made directly to a physician$1 RentsAmounts paid for Rental of Office$14 Gross proceeds paid toan attorneyReport all Attorney Fees$7 Nonemployee compensationLost pay and any payments made to Nonemployees for Union Business$Recruitment Rebates, Arbitrators, Accountants, Stipends, Allowances ……
10 Form 1096 Must include the following: Local’s Address Local’s Federal I.D. NumberTotal Number of 1099’s IssuedTotal Amount Reported on All 1099’sContact Name and Phone NumberCopies of All 1099’s IssuedPlease note:Payments made for normal payroll where payroll taxes are withheld are reported on I.R.S. form W-2.
11 Enter number of 1099s you are transmitting with this form 3 Total number offormsEnter number of 1099s you are transmitting with this form5 Total amount reported with this Form 1096Enter amounts reported in boxes 1, 2, 3, 5, 7, 8, 10, 13, and 14 from 1099s$
12 Non-TAXABLE PAYMENTS to OFFICERS and MEMBERS Business RelatedExpense must be for union businessDocumentationIndividual receiving payment must provide detailed records, (i.e. vendor receipts, travel voucher) showing time, place and business purpose. Records must be maintained by local.TimelinessMust voucher expenses in a reasonable amount of time.Return of Excess AmountsAll 4 Factors Must be Met or Payment is Taxable
13 Business related, timeliness, and return of excess amounts also apply Officer Allowances & StipendsAre Expense Vouchers Provided by the Officer to the Local to Account for the Allowance or Stipend?Payments are Taxable!Payments are Not Taxable!Business related, timeliness, and return of excess amounts also apply
14 Reimbursed Expenses to Officers and Members Are Vendor Receipts Provided to the Local to Account for the Expenses?Payments are Taxable!Payments are Not Taxable!Are Expenses for Union Business?Payments are Taxable!Payments are Not Taxable!Timeliness and Return of Excess Amounts Also Applies
15 Some Other Taxable Payments Membership Recruitment PaymentsPayments for Services Provided - i.e. Legal, Arbitration, Typing….Reimbursement for Annual Leave or Lost TimeItems or Equipment Purchased for Officers or Members
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