TAXABLETAXABLE and and Non-TAXABLENon-TAXABLE

PaymentsPayments

Financial Officer is Responsible for the Completion and Filing of:

AFGE’sAFGE’sAnnual Audit Certification FormAnnual Audit Certification Form 41 41

I.R.S.’sI.R.S.’sForm 990 and 990-EZForm 990 and 990-EZ

D.O.L.’sD.O.L.’sForm LM-2, LM-3, and LM-4Form LM-2, LM-3, and LM-4

Annual AuditCertification - Form 41Click here to View/Download FormClick here to View/Download Form

Due Dates: Due Dates: Normally 03/31Normally 03/31(90 Days After Year End)(90 Days After Year End)

Each local is required to conduct an Each local is required to conduct an audit at least once a year and make a audit at least once a year and make a certification using certification using Form 41Form 41 to the to the National Secretary-Treasurer that National Secretary-Treasurer that such an audit has been completed.such an audit has been completed.

I.R.S. 990 & 990-EZ FormsYou May Download Forms and Instructions from (click to access)IRS Forms & Publications Web Site

Due Dates: Due Dates: Normally 05/15Normally 05/15(15(15thth Day of the 5 Day of the 5thth Month after Year End) Month after Year End)

FormGross Receipts

More than $100,000

Less than $100,000

Less than $25,000

File 990 XFile 990 EZ X

Do not File X

Click here to View/Download FormClick here to View/Download Form

D.O.L.D.O.L.

Due Dates: Due Dates: Normally 03/31Normally 03/31(90 Days After Year End)(90 Days After Year End)

FormGross Receipts

More than $200,000

Less than $200,000

Less than $10,000

LM-2 XLM-3 XLM-4 X

LM-2, LM-3, LM-4 FormsClick here to see Form Instructions at DOL Web Site

Quick Reference GuideQuick Reference Guide990-EZ 990 LM-3 LM-2

UNION DUES

(DUES RETURNED FROM NATL.)

INTEREST INCOME LINE 4 LINE 4 LINE 41 LINE 46

SALE OF UNION ITEMS LINE 6A LINE 9A LINE 43 LINE 45

(IF LARGE SCALE) LINE 7A LINE 10A LINE 43 LINE 45

MEMBERSHIP EVENTS REVENUE

(PARTIES AND DANCES)

PCT PAYMENTS LINE 10 LINE 16 LINE 47 LINE 58

AFL-CIO AFFILIATION FEES LINE 16 LINE 16 LINE 54 LINE 73

BOND PREMIUM LINE 16 LINE 43 LINE 54 LINE 73

OFFICER STIPENDS LINE 12 LINE 25 LINE 45 LINE 56

PAYROLL TAXES LINE 12 LINE 29 LINE 54 LINE 66 + 67

TELEPHONE & FAX LINE 16 LINE 34 LINE 48 LINE 60

OFFICE SUPPLIES LINE 16 LINE 33 LINE 48 LINE 60

REIMBURSED EXPENSES-OFFICERS LINE 16 LINE 39 OR 40 LINE 45 LINE 56

EXPENSE ALLOWANCES-OFFICERS LINE 12 OR 16 LINE 25 OR 39 LINE 45 LINE 56

TRAVEL EXPENSES-OTHERS LINE 16 LINE 39 LINE 46 OR 54 LINE 57 OR 73

MEMBER BENEFIT PREMIUMS

(DENTAL, VISION OR LIFE)

ACCOUNTANT FEES LINE 13 LINE 31 LINE 49 LINE 62

ARBITRATION FEES & LEGAL FEES LINE 13 LINE 32 LINE 49 LINE 62

EQUIPMENT RENTAL LINE 16 LINE 37 LINE 48 LINE 60

EQUIPMENT PURCHASES LINE 24 LINE 57A LINE 52 LINE 68

NEWSLETTER COST LINE 15 LINE 38 LINE 54 LINE 61

LUNCH & LEARN MEETINGS LINE 16 LINE 40 LINE 45,46,54 LINE 61 OR 73

BOARD AND MEMBER MEETINGS LINE 16 LINE 40 LINE 45,46,54 LINE 56,57,73

MEMBERSHIP EVENTS EXPENSES LINE 6B LINE 9B LINE 45,46,54 LINE 56,57,73

IRS DOL

LINE 3 LINE 3 LINE 38 LINE 39

REVENUE:

EXPENSE:

LINE 11 LINE 24 LINE 50 LINE 72

LINE 6A LINE 9A LINE 43 LINE 54

Due Dates:Due Dates:1099 must be given to individuals 1099 must be given to individuals

by by January 31stJanuary 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)

When a non-PAYROLL Payment Exceeds $599.00 to an Individual for a Calendar Year, You Must Provide him/her an IRS 1099-MISC Form .

Individual’s NameIndividual’s AddressIndividual’s Social Security NumberLocal’s Federal I.D. NumberTotal 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-MISCForm 1099-MISC

11 66 77 &.. &.. 1414BoxesBoxes

Form 1099-MISCForm 1099-MISC1 Rents

Amounts paid for Rental of Office

$

6 Medical and health care paymentsShow Dental, Vision or Health

payments that are made directly to a physician

$

14 Gross proceeds paid to an attorneyReport all Attorney

Fees$

7 Nonemployee compensationLost pay and any payments made to Nonemployees for

Union Business

$ 5500.00

Recruitment Rebates, Arbitrators, Recruitment Rebates, Arbitrators, Accountants, Stipends, Allowances ……Accountants, Stipends, Allowances ……

Local’s AddressLocal’s Federal I.D. NumberTotal Number of 1099’s IssuedTotal Amount Reported on All 1099’sContact Name and Phone NumberCopies of All 1099’s Issued

Form 1096Form 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.

3 Total number of formsEnter number of 1099s you are transmitting with this

form

5 Total amount reported with this Form 1096Enter amounts reported in boxes 1, 2, 3, 5,

7, 8, 10, 13, and 14 from 1099s

$

Form 1096Form 1096

Non-TAXABLE PAYMENTS to Non-TAXABLE PAYMENTS to OFFICERS and MEMBERSOFFICERS and MEMBERS

All All 44 Factors Must be Met or Factors Must be Met or Payment is TaxablePayment is Taxable

Business Related Expense 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 Amounts

Officer Allowances & StipendsOfficer Allowances & Stipends

Are Expense Vouchers Provided by Are Expense Vouchers Provided by the Officer to the Local to Account for the Officer to the Local to Account for the Allowance or Stipend? the Allowance or Stipend?

Business related, timeliness, and return of excess amounts also apply

Payments are Taxable!

Payments are Not Taxable!

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 Reimbursed Expenses to Officers and MembersOfficers and Members

Payments are Taxable!

Payments are Not Taxable!

Payments are Taxable!

Payments are Not Taxable!

Membership Recruitment Payments Payments for Services Provided - i.e. Legal, Arbitration, Typing….Reimbursement for Annual Leave or Lost TimeItems or Equipment Purchased for Officers or Members

Some Other Taxable Some Other Taxable PaymentsPayments

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