ThomasC12
Posts: 7
Posts: 7
Posted:
We have a Board member who is being paid by our HOA to make street signs, banners, and other items for the community. He is receiving compensation while serving on the Board.
Is this legal?
Is this legal?
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Paying Director for Services
Started by ThomasC12 • 4 replies • 1314 views
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GlenL
Posts: 5,429
Posts: 5,429
Posted:
Legal is a question for attorneys; however since he is making something that I would not characterize as normal director duties, I would not think it improper.
JonD1
Posts: 2,310
Posts: 2,310
Posted:
I would agree with Glen. In most documents a Director cannot be compensated for their work as a Director.
When as in this case they are making signs or producing products for use by the property this work is NOT within their role as Director.
When a Director does work outside their role on the Board I see no reason why they should not be paid.
If this Director took on the role of mowing the property's lawns would they then be required to do so for free?
Many people look for issues and conflicts when in fact none exist and suggest that those serving on the Board do anything and everything as a volunteer and without pay. I would prefer they appreciate the members efforts on their behalf and support their efforts rather than questioning their actions.
When as in this case they are making signs or producing products for use by the property this work is NOT within their role as Director.
When a Director does work outside their role on the Board I see no reason why they should not be paid.
If this Director took on the role of mowing the property's lawns would they then be required to do so for free?
Many people look for issues and conflicts when in fact none exist and suggest that those serving on the Board do anything and everything as a volunteer and without pay. I would prefer they appreciate the members efforts on their behalf and support their efforts rather than questioning their actions.
MaryA1
Posts: 6,993
Posts: 6,993
Posted:
Thomas,
I agree with Glen. Being paid for doing work outside of his board member duties is not the same as being paid for being a board member.
I don't know how much he will be paid in the course of a year, but I hope the BOD understands that they must give him a 1099 at the end of the year. The rule of thumb is if a person earns $600 or more a 1099 is required. However, the IRS requires an individual to report every penny of income earned.
I agree with Glen. Being paid for doing work outside of his board member duties is not the same as being paid for being a board member.
I don't know how much he will be paid in the course of a year, but I hope the BOD understands that they must give him a 1099 at the end of the year. The rule of thumb is if a person earns $600 or more a 1099 is required. However, the IRS requires an individual to report every penny of income earned.
SusanW1
Posts: 5,197
Posts: 5,197
Posted:
"He is receiving compensation while serving on the Board."
No - he is being paid for a job done for the HOA that has nothing to do with his Board service. There IS a difference.
If you are concerned, then price out the same jobs at your local sign shop. I bet you are being given a real deal. If not, then contract with the sign shop.
No - he is being paid for a job done for the HOA that has nothing to do with his Board service. There IS a difference.
If you are concerned, then price out the same jobs at your local sign shop. I bet you are being given a real deal. If not, then contract with the sign shop.
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