Receipt of Payment Template

About this template

A receipt of payment documents when your organization pays contractors, vendors, or service providers who don't provide standard invoices or receipts. This template creates a paper trail for payments to individuals or small vendors, particularly common with international contractors, interview participants, or one-time service providers.

Note: this is different from a Replacement Reciept for expense reimbursement purposes when the original receipt is unavailable.

Who needs this

• Organizations paying contractors or vendors without formal invoicing systems
• Research organizations compensating interview participants
• Organizations needing documentation for cash or informal payments
• Working with vendors in regions where formal invoicing isn't standard

Don't use this template for:

• Regular vendors who should provide invoices
• Employee salary or wage payments
• Purchases where you receive goods (use standard receipts)
• Recurring service providers who can issue proper invoices

How to customize this template

Organization details

• Replace ORG_NAME with your organization's name throughout
• Add your organization's tax ID if required in your jurisdiction
• Consider adding your organization's address for formal documentation

Payment categories

Adjust the payment types to match your common uses:

• Research organizations: Interview participation, focus group participation, user testing, survey completion, study participation
• Media/content organizations: Video editing, graphic design, transcription services, translation, voice-over work, content writing
• Event organizations: Speaker fees, workshop facilitation, panel participation, performance fees, equipment rental from individuals
• Community organizations: Interpretation services, cultural consulting, community liaison work, local coordination, outreach services
• General services: Consulting, training delivery, data entry, temporary assistance, specialized expertise

Remove categories you won't use to keep the form simple and add specific categories relevant to your work.

Tax identification fields

Different jurisdictions require different tax documentation:

• United States: Include space for SSN or EIN for amounts over $600 (1099 reporting)
• United Kingdom: Add space for UTR (Unique Taxpayer Reference) or National Insurance number
• European Union: Include VAT number field if applicable
• Other regions: Research local tax ID requirements

Setting payment thresholds

If you have one, your organization's expense or payment policy should specify when this template is appropriate versus requiring formal invoices. Consider incorporating thresholds into your policy:

Common threshold approach is a bandwidth:

• Under $100-250: Receipt of payment acceptable
• $250-1,000: Receipt of payment with additional documentation
• Over $1,000: Formal invoice required

These thresholds should align with your existing expense approval levels and risk tolerance. Document these limits in your expense reimbursement or accounts payable policy so staff know when to use this template versus requesting formal documentation.

Additional documentation requirements
For larger amounts, consider requiring supplementary documentation:

• Copy of recipient's government-issued ID
• Written agreement or scope of work
• Bank transfer confirmation
• Secondary approval signature

Best practices

• Pre-fill known information - Complete organization sections before meeting contractors
• Translate if needed - Provide template in languages your contractors read
• Explain purpose - Help recipients understand this protects both parties
• Keep copies accessible - Contractors may need copies for their tax filing
• Review regularly - Update template as regulations or needs change
• Train staff - Ensure anyone making payments understands when and how to use

Compliance considerations

US organizations

• Track total annual payments per recipient for 1099 reporting
• Collect W-9 forms before first payment when possible
• Maintain records for 7 years for tax purposes

International payments

• Research withholding requirements for payments to foreign nationals
• Document any tax treaty benefits claimed
• Keep records of recipient's country of tax residence