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Can sections give gift cards or gift certificates and are there any special tax issues relating to giving gift certificates or gift cards?

Yes, sections may purchase and be reimbursed for gift certificates and gift cards which are not redeemable for cash if the amounts are not significant. However, gift cards and certificates over $100, and gift cards or certificates in any amount which are redeemable for cash such as Visa or MasterCard gift cards, are considered taxable income to the recipient, which requires special reporting. We suggest sections considering giving gift cards or certificates, which exceed the thresholds noted above, contact the SBM finance staff before purchasing these items to discuss the tax issues.

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What is the difference between a check request, an invoice, a section payment form, and an expense reimbursement voucher?

An invoice is a bill from an outside source or vendor and should not appear on a voucher unless a section member has paid the invoice herself/himself.

An Expense Reimbursement Form is a form we supply for section members to use so they can obtain reimbursement for expenses they have incurred—examples are mileage, parking, lodging, etc.
Expense Reimbursement Form

A Check Request Form is used if the expense is not a reimbursement and if you do not have an invoice. Donations are an example of an expense where a check request form would be used. Minutes approving the expense should be attached to a check request form. This form should also be used to request payment for section administrators and assistants.
Check Request Form

A Section Payment Form is used when payment for services are issued to a section member. Example: payments for newsletter editing.
Section Payment Form

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How do I get invoices paid?

Invoices must be submitted to the State Bar of Michigan with the section treasurer’s signature on it indicating authorization to pay. The general ledger account number(s) that you want the expense to be charged to should also appear on the invoice. If an invoice is submitted to the State Bar of Michigan directly from a vendor or from a section member other than the treasurer, you may e-mail authorization for payment to Patti Schafer at pschafer@mail.michbar.org. Please include in your e-mail, the vendor, invoice number, amount to pay, explicit authorization to pay, and account numbers to charge the expenses.

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How do I report meals for groups or council meetings?

When you send in a bill for a group or council meeting, you must include a list of attendees. There are three options for you to provide this information:

1. An attendance sheet.
2. A copy of the minutes.
3. If the meeting is for the council, you may include a statement that indicates only the council present, the council except for named individuals, or the council including named individuals.

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How do section members get reimbursed for their expenses?

By filling out a voucher and having the section treasurer approve it. Receipts are required for expenses exceeding $25 and must be attached to the voucher.

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Where can I get blank forms?

Blank expense reimbursement forms, check request forms, and payment request forms can be downloaded here.

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Who is authorized to approve expenses?

All expense vouchers and invoices must be approved by the section treasurer or chair. Expense vouchers to reimburse a section treasurer must be approved by the section chairperson.

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Where do I get an IRS W-9 form and who should fill one out?

All vendors (individuals and companies) must have an IRS W-9 on file with us before we can process payment to them. This form indicates to us whether or not the vendor should receive an IRS 1099. A W-9 is not necessary if the payment is for reimbursement (mileage, lodging, etc) only. This form may be downloaded at http://www.irs.gov/pub/irs-pdf/fw9.pdf.

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