Article VII - Expenditures - Documentation
Receipts, invoices and/or other documentation must be maintained to support all disbursements.
Expense reports must be used to document all reimbursements to officers, members and employees. Each item to be reimbursed must be documented to indicate its date, amount and specific union purpose. Original receipts must be attached. All expense reports should be filed timely. The IRS considers within thirty 30 days to be timely.
Officer expense reports must be approved by the Executive Board or a designated officer selected for that purpose, employee expense reports must be approved by the employee’s supervisor.
Expense reports must account for all expenses reimbursed as well as those incurred costs that are to be paid directly by the affiliate (e.g., direct hotel billings, charges incurred on the affiliates’ credit card). Expense reports for any meal or entertainment item must list the name(s), title and union relationship of the person(s) entertained and provide an explanation of the specific union business discussed. The detailed receipt of food and beverage consumed should also be provided.
The affiliate must not pay the credit card company for any charges incurred on a union-owned credit card without all of the charges adequately documented. Any individual authorized to use the affiliate’s credit card must provide an itemized expense report accounting for each and every charge, as well as provide an explanation of the union purpose of each charge. The actual credit card receipt and the itemized sales slip must be attached to the expense report.
Personal charges on the affiliate’s credit card are strictly prohibited and under no circumstances should the affiliate make a payment directly to a credit card company for an individual’s personal credit card.
Care should be taken to comply with all appropriate IRS requirements for documentation and reporting, including:
- Expense reports - see Section 2 above and Appendix F.
- Credit Cards - see Section 3 above and Appendix F.
- Payroll Taxes - taxable per diem, lost time, auto allowances, officer allowances, stipends, non-accountable expense advances, etc. must be treated as wages subject to withholding and require payment of payroll taxes and preparation of IRS Form W-2s and other applicable tax returns - see Appendix F.
- Leased/Owned cars - if provided to officers and/or employees, require that contemporaneous usage logs are maintained. The value of personal usage (including commuting) must be included as taxable income to the officer and/or employee and reported on their W-2 form. See Appendix F.