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Financial Issues for Local and State Union Officers:
IRS Forms
(Updated Jan. 15, 2009)
W-2 Forms
Like all other employers, unions must issue W-2 [PDF] forms to their employees by January 31 of each year — notifying them of the amount of their earnings, tax withholdings, and certain benefits for the previous year.
Employers must make certain that these forms accurately reflect the amount paid to every employee.
(The sample W-2 Form provided here cannot be used for filing taxes.)
W-3 Forms
W-3 [PDF] forms are used by all employers — including unions — to summarize the information on W-2 forms for all their employees at year's end.
W-3 forms serve as a control sheet that tells the IRS how many employees you have and whether your W-2s are accurate. If you use a payroll service, the payroll service will provide both the W-2 and W-3 forms.
(The sample W-3 Form provided here cannot be used for filing taxes.)
W-4 Forms
Employers use W-4 forms [PDF] to collect the information they need to calculate payroll withholdings for their employees. Unions should ask their employees to complete W-4 forms every year.
W-9 Forms
W-9 [PDF] forms should be completed by companies or self-employed individuals that perform services for your union.
The forms provide data the union will need to complete IRS Form 1099-Misc. By completing the form, the signer stipulates that the information he or she has provided is correct.
Form 940
IRS Form 940 [PDF] at year end is used to pay federal unemployment taxes.
Form 941
IRS Form 941 [PDF] is used to report all taxable wages, withheld taxes, and employer's FICA liabilities for a specific quarter. It also records the deposits that unions have made against the liabilities.
The IRS uses the form to gauge whether the employer has made the deposits in a timely manner. The IRS is a real stickler on this form, and their deposits, so careful attention must be paid!
Form 941 Schedule B
The IRS uses Form 941 Schedule B [PDF] to tell when a union's taxes were due, and whether the payments were made on time.
Only unions that meet certain thresholds must use this form. Under current law, if the union's tax liability is greater than $2,500 per quarter, they must use this form.
Form 941C
IRS Form 941 C [PDF] should be used to correct mistakes made on Form 941.
Form 990
IRS Form 990 [PDF] is the tax form used by unions that have more than $2,500,000 in assets and more than $1,000,000 in gross receipts for a tax year.
Unions with assets and receipts below these thresholds may file a Form 990-EZ [PDF].
Form 990 EZ
IRS Form 990 EZ [PDF] is the tax form used by unions that have less than $2,500,000 in assets and less than $1,000,000 in gross receipts for a tax year.
Form 990-N
APWU locals whose annual gross receipts are $25,000 or less are required to electronically submit Form 990-N, also known as the e-Postcard, if they elect not to file Form 990 or Form 990-EZ.
The e-Postcard is due every year by the 15th day of the 5th month after the close of the local’s fiscal year. For example, if the fiscal year ended on Dec. 31, 2008, the e-Postcard is due May 15, 2009. The e-Postcard cannot be filed until after the tax year ends.
Small tax-exempt organizations (those normally with annual gross receipts up to $25,000) may be required to file an annual electronic notice, Form 990-N, Electronic Notice (e-Postcard) for Tax-Exempt Organizations not Required To File Form 990 or 990-EZ. This filing requirement applies to tax periods beginning after December 31, 2006, and may apply to organizations that previously were not required to file returns.
To file the e-postcard, visit http://epostcard.form990.org/
Form 990-T
If a union has significant income from a source other than dues, it must complete IRS Form 990 T [PDF] to report that income separately from the dues it receives.
Locals that fall in this category are urged to contact a professional tax preparer or APWU headquarters for assistance.
Form 1096
IRS Form 1096 [form and instructions - PDF] is used by the local unions to summarize information for submission to the IRS about miscellaneous income paid the union during a tax year. It indicates the total dollar amount of all of the local's 1099 Forms (used to report miscellaneous income), as well as the number of 1099s attached.
It is used by the IRS as a Control Sheet.
(The sample form provided here cannot be used for filing taxes.)
Form 1099-Misc
IRS Form 1099-Misc [PDF] is used to report payments for all non-employee compensation above $600. It is used to show payments for people or companies that performed services for the union, and from whom the union did not deduct taxes. Instructions [st1099miscinstr.pdf] are provided separately.
The information for this form should come from a completed W-9.
[Form 1099-Misc Instructions - PDF]
(The sample Form 1099-Misc provided here cannot be used for filing taxes.)
Form 8109-B
Unions should use IRS Form 8109-B [PDF] when making payments for any type of payroll tax (i.e. Federal Withholding, Social Security and Medicare, Federal Unemployment, unrelated business income tax, etc.) at the bank or other financial institution.
It is important to record the proper tax period on the coupon, as hours of effort will be required to correct the problem if the wrong tax period is recorded by the IRS.
A better alternative is to pay taxes using the Electronic Fund Tax Payment System (EFTPS).
(The sample Form 8109-B provided here cannot be used for filing taxes.)
