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TAXABLE and Non-TAXABLE Payments. Financial Officer is Responsible for the Completion and Filing of: AFGE’s Annual Audit Certification Form 41 I.R.S.’s.

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Presentation on theme: "TAXABLE and Non-TAXABLE Payments. Financial Officer is Responsible for the Completion and Filing of: AFGE’s Annual Audit Certification Form 41 I.R.S.’s."— Presentation transcript:

1 TAXABLE and Non-TAXABLE Payments

2 Financial Officer is Responsible for the Completion and Filing of: AFGE’s Annual Audit Certification Form 41 I.R.S.’s Form 990 and 990-EZ D.O.L.’s Form LM-2, LM-3, and LM-4

3 Annual Audit Certification - Form 41 Click here to View/Download Form Due 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 I.R.S. 990 & 990-EZ Forms You May Download Forms and Instructions from (click to access) IRS Forms & Publications Web Site IRS Forms & Publications Due Dates: Normally 05/15 (15 th Day of the 5 th Month after Year End) Form Gross Receipts More than $100,000 Less than $100,000 Less than $25,000 File 990 X File 990 EZ X Do not File X Click here to View/Download Form

5 D.O.L. Due Dates: Normally 03/31 (90 Days After Year End) Form Gross Receipts More than $200,000 Less than $200,000 Less than $10,000 LM-2 X LM-3 X LM-4 X LM-2, LM-3, LM-4 Forms Click here to see Form Instructions at DOL Web SiteDOL Web Site

6 Quick Reference Guide

7 Due Dates: 1099 must be given to individuals by January 31st Copies 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) 1096 Form When a non-PAYROLL Payment Exceeds $ to an Individual for a Calendar Year, You Must Provide him/her an IRS 1099-MISC Form.

8 Individual’s Name Individual’s Address Individual’s Social Security Number Local’s Federal I.D. Number Total Amount Paid to Individual for the year Please note: Payments made for normal payroll where payroll taxes are withheld are reported on I.R.S. form W-2. Must include the following: Form 1099-MISC 1 6 7&.. 14 Boxes Boxes 

9 Form 1099-MISC 1 Rents Amounts paid for Rental of Office $ 6 Medical and health care payments Show Dental, Vision or Health payments that are made directly to a physician $ 14 Gross proceeds paid to an attorney Report all Attorney Fees $ 7 Nonemployee compensation Lost pay and any payments made to Nonemployees for Union Business $ Recruitment Rebates, Arbitrators, Accountants, Stipends, Allowances ……

10 Local’s Address Local’s Federal I.D. Number Total Number of 1099’s Issued Total Amount Reported on All 1099’s Contact Name and Phone Number Copies of All 1099’s Issued Form 1096 Must include the following: Please note: Payments made for normal payroll where payroll taxes are withheld are reported on I.R.S. form W-2.

11 3 Total number of forms Enter number of 1099s you are transmitting with this form 5 Total amount reported with this Form 1096 Enter amounts reported in boxes 1, 2, 3, 5, 7, 8, 10, 13, and 14 from 1099s $ Form 1096

12 Non-TAXABLE PAYMENTS to OFFICERS and MEMBERS All 4 Factors Must be Met or Payment is Taxable Ê Business Related Expense must be for union business Ë Documentation Individual receiving payment must provide detailed records, (i.e. vendor receipts, travel voucher) showing time, place and business purpose. Records must be maintained by local. Ì Timeliness Must voucher expenses in a reasonable amount of time. Í Return of Excess Amounts

13 Officer Allowances & Stipends Are Expense Vouchers Provided by the Officer to the Local to Account for the Allowance or Stipend? Business related, timeliness, and return of excess amounts also apply Payments are Taxable! Payments are Not Taxable!

14 Are Vendor Receipts Provided to the Local to Account for the Expenses? Are Expenses for Union Business? Timeliness and Return of Excess Amounts Also Applies Reimbursed Expenses to Officers and Members Payments are Taxable! Payments are Not Taxable! Payments are Taxable! Payments are Not Taxable!

15 Membership Recruitment Payments Payments for Services Provided - i.e. Legal, Arbitration, Typing…. Reimbursement for Annual Leave or Lost Time Items or Equipment Purchased for Officers or Members Some Other Taxable Payments

16 This concludes our PowerPoint® presentation. Any recommendations or suggestions are appreciated. Please send to We hope you have found this presentation useful.


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