WA Form C4 and Accrued Expense Payments

On the WA Form C4 and the Form C4 Non-Candidate, payments towards an Accrued Expense with "sub-debts" (splits) must be reported in a certain way.

When a partial payment is made on an Accrued Expense that has splits, the payment is applied to the SPLIT amounts on the report. These amounts are attributed to the splits using the FIFO (First In, First Out) method, meaning the oldest split gets the payment applied first.

Here is an example.

The Original Accrued Expense looks like this:

ENTITY: Vendor & Co.
AMOUNT: 08/16/2019
DATE: 5000.00

  • SPLIT #1 ENTITY: Carl Consultant
    SPLIT #1 AMOUNT: 500.00
    SPLIT #1 DATE: 08/02/2019
  • SPLIT #2 ENTITY: USPS
    SPLIT #2 AMOUNT: 1215.73
    SPLIT #2 DATE: 08/10/2019
  • SPLIT #3 ENTITY: The Paper Store
    SPLIT #3 AMOUNT: 984.65
    SPLIT #3 DATE: 08/10/2019
  • SPLIT #4 ENTITY: Fred Fundraiser
    SPLIT #4 AMOUNT: 2275.00
    SPLIT #4 DATE: 08/10/2019
  • SPLIT #5 ENTITY: Crafts N More
    SPLIT #5 AMOUNT: 24.62
    SPLIT #5 DATE: 08/10/2019

In August, there is a $1500 payment. This means the debts would appear on the 8/1 - 8/31 report like so:

ENTITY: Vendor & Co.
AMOUNT: 3500.00
DATE: 08/16/2019

  • SPLIT #2 ENTITY: USPS
    SPLIT #2 AMOUNT: 215.73
    SPLIT #2 DATE: 08/10/2019
  • SPLIT #3 ENTITY: The Paper Store
    SPLIT #3 AMOUNT: 984.65
    SPLIT #3 DATE: 08/10/2019
  • SPLIT #4 ENTITY: Fred Fundraiser
    SPLIT #4 AMOUNT: 2275.00
    SPLIT #4 DATE: 08/10/2019
  • SPLIT #5 ENTITY: Crafts N More
    SPLIT #5 AMOUNT: 24.62
    SPLIT #5 DATE: 08/10/2019

Because Split #1 is oldest, the payment is applied to that first. The payment of $1500 is more than the $500 amount, so that split no longer itemizes. The other $1000 is applied to split #2 (as splits #2 - #5 have the same date), reducing the amount to $215.73.

The payments will be listed on Schedule A in a similar fashion, with the name & description from the corresponding splits:

  • EXPENSE #1 ENTITY: Vendor & Co
    EXPENSE #1 AMOUNT: 500.00
    EXPENSE #1 NOTE: Carl Consultant: Test B4 Vendor #1
  • EXPENSE #2 ENTITY: Vendor & Co
    EXPENSE #2 AMOUNT: 1000.00
    EXPENSE #2 NOTE: USPS: Test B4 Vendor #2

In September, there is a $933.93 payment. This means the debts would appear on the 9/1 - 9/30 report like so:

ENTITY: Vendor & Co.
AMOUNT: 2566.07
DATE: 08/16/2019

  • SPLIT #3 ENTITY: The Paper Store
    SPLIT #3 AMOUNT: 266.45
    SPLIT #3 DATE: 08/10/2019
  • SPLIT #4 ENTITY: Fred Fundraiser
    SPLIT #4 AMOUNT: 2275.00
    SPLIT #4 DATE: 08/10/2019
  • SPLIT #5 ENTITY: Crafts N More
    SPLIT #5 AMOUNT: 24.62
    SPLIT #5 DATE: 08/10/2019

Once again, Split #2 had an amount of $215.73, and the $933.93 is greater than that, so the split no longer itemizes. The remaining $718.20 applies to Split #3, reducing the amount to $266.45.

The payments will be listed on Schedule A in a similar fashion, with the name & description from the corresponding splits:

  • EXPENSE #1 ENTITY: Vendor & Co
    EXPENSE #1 AMOUNT: 215.73
    EXPENSE #1 NOTE: USPS: Test B4 Vendor #2
  • EXPENSE #2 ENTITY: Vendor & Co
    EXPENSE #2 AMOUNT: 718.20
    EXPENSE #2 NOTE: The Paper Store: Test B4 Vendor #3

Please let us know if you have any questions or concerns.