As a Notary signing agent just starting out I have a question about the format for invoices. I understand that fees charged for the act of notarizing documents are exempt from Self Employment tax so that needs to be tracked. The only I have found in Quickbooks to do that is to create it as a service. This leads to two lines on an invoice. One for the Service Fee and one for Signing fees (which are variable depending on the number of notarizations).
Do contracting agencies understand this, is there a better way to create it?
Thanks for any help.
I never itemized my invoices for loan signings - when invoice required I simply put "Loan Signing
Name of borrower
Location
Date of Signing
Title/Hiring party File No.
I broke down notary fees internally (I’m a dinosaur - go back to paper records) - at the top of my invoice I’d mark “notarizations/balance” - so…for a $125 closing with 6 notarizations (at $10/notarization) the marking at the top of my invoice would look like “60/65”
Then a separate notebook in columns - Date, Paying Party/Signer, total due, notary fee, balance - so
10/16/2020 Eagle Title/Johnson $125 $60 $65
Total them at end of year for total exempt fees