On-line Interactive* Financial Training by National Secretary-Treasurer Gary Ruffner and James C. Kokolas, CPA
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NOTICES - WHAT'S NEW
IRS STANDARD MILEAGE RATE JULY 1, 2011 TO DECEMBER 31, 2011 is 55.5 cents per mile The rate will increase to 55.5 cents a mile for all business miles driven from July 1, 2011, through Dec. 31, 2011. http://www.irs.gov/newsroom/article/0,,id=240903,00.html
The limitations that are adjusted by reference to Section 415(d) will remain unchanged for 2010. This is because the cost-of-living index for the quarter ended September 30, 2009, is less than the cost-of-living index for the quarter ended September 30, 2008, and, following the procedures under the Social Security Act for adjusting benefit amounts, any decline in the applicable index cannot result in a reduced limitation. For example, the limitation under Section 402(g)(1) on the exclusion for elective deferrals described in Section 402(g)(3) will be $16,500 for 2010, which is the same amount as for 2009. This limitation affects elective deferrals to Section 401(k) plans and to the Federal Government’s Thrift Savings Plan, among other plans. http://www.irs.gov/newsroom/article/0,,id=214321,00.html
NEW REVENUE LIMITS FOR 990 AND 990-EZ FILERSFORM 990, 990-EZ, and 990-N for all local unionsForm 990-EZ Filing Amounts for 2008–2010 Form 990-EZ, Short Form Return of Organization Exempt From Income Tax, may be filed by most organizations with gross receipts and total assets below certain amounts. For calendar or fiscal years beginning in 2008, most organizations with gross receipts less than $1,000,000 and total assets less than $2,500,000 may choose to file Form 990 or Form 990-EZ. (For 2007, these amounts were less than $100,000 gross receipts and $250,000 total assets.) For 2009, most organizations with gross receipts less than $500,000 and total assets less than $1,250,000 may choose to file Form 990 or Form 990-EZ. Beginning in 2010, most organizations with gross receipts less than $200,000 and total assets less than $500,000 may file either Form 990 or Form 990-EZ.
Although Form 990-EZ was not redesigned for 2008, some changes have been made. Organizations that file the 2008 Form 990-EZ must review the instructions for Schedules A, B, C, E, G, L, and N to determine whether they must now report any of their activities or information on those schedules. Form 990-EZ filers will not be required to complete any of the other 2008 Form 990 schedules. Phone Help: If you have questions and/or need help completing Form 990, please call 1-877-829-5500. This toll-free telephone service is available Monday through Friday.
New annual electronic filing requirement for small tax-exempt organizations
Many small tax-exempt organizations now must file new Form 990-N, Electronic Notice (e-Postcard) for Tax-Exempt Organizations Not Required to File Form 990 or 990-EZ, if they choose not to file Form 990 or Form 990-EZ. See the IRS website at www.irs.gov and click on the Form 990-N (e-Postcard) tab for more information.
Form 990- EZ, 990, and 990-N are due every year by the 15th day of the 5th month after the close of your tax year. THESE REVENUE LIMITS WILL REDUCE EACH YEAR – BE SURE TO CHECK THE LIMITS EACH YEAR
IDENTITY THEFT ADVICE AVAILABLE
You can check the State Attorney General's Consumer Protection site in your state, such as the one listed below for New Jersey.
OTHER FINANCIAL INFORMATION YOU MAY NEED Form LM-30 Labor Organization Officer and Employee Report: Union officers or employees (except employees performing exclusively clerical or custodial services) must file a Labor Organization Officer and Employee Report, Form LM-30, if they or their spouses or minor children have certain interests or dealings related to an employer whose employees their union represents or is actively seeking to represent. Note: The Office of Labor-Management Standards published in the spring 2009 Semi-Annual Regulatory Agenda notice of an intended rulemaking to revise the Form LM-30 (Labor Organization Officer and Employee Report). See: http://www.reginfo.gov/public/do/eAgendaViewRule?pubId=200904&RIN=1215-AB74. The rulemaking is intended to review questions of policy and law surrounding these reporting requirements. The rulemaking will focus on the changes resulting from a 2007 regulatory revision of the Form and instructions. This revision dramatically altered the old Form LM-30 and instructions, which had not substantially changed in over 40 years. Despite the promulgation of the new Form LM-30, fundamental questions regarding the scope and extent of the reporting obligations are unanswered, and litigation challenging some aspects of the form remains pending. In light of this uncertainty, the pending regulatory action, the pending litigation and the continuing obligation of union officers and employees pursuant to section 202 of the Labor-Management and Reporting Disclosure Act (LMRDA), 29 U.S.C. § 432, OLMS has determined that it would not be a good use of resources to bring enforcement actions based upon a failure to use a specific form to comply with the statutory obligation to report certain financial information. Accordingly, OLMS will refrain from initiating enforcement actions against union officers and union employees based solely on the failure to file the report required by section 202, using the 2007 form, as long as individuals meet their statutorily-required filing obligation in some manner. OLMS will accept either the old Form LM-30 or the new one for purposes of this non-enforcement policy.
FREE for UWUA Locals!!! Software for your Local - from LaborSoft Print a grievance form for filing a grievance Print a grievance form for filing a grievance ~ If you would like the original Microsoft Word Document so you can edit for your use, send an e-mail request to:
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Contact National Secretary-Treasurer Gary Ruffner with comments and/or suggestions to improve this financial site. Include your name and Phone #. CLICK HERE >>
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FORM 990, 990-EZ, and 990-N for all local unions A. Who Must File: Most organizations exempt from income tax under section 501 must file an annual information return (Form 990 or Form 990-EZ) or an annual electronic notice (Form 990-N). For 2008, Form 990 must be filed by an organization exempt from income tax under section 501 (including an organization that has not applied for recognition of exemption) if it has either (1) gross receipts greater than or equal to $1,000,000 or (2) total assets greater than or equal to $2,500,000 at the end of 5 the tax year. Gross receipts are the total amounts the organization received from all sources during its annual accounting period.. Form 990-N. If an organization normally has gross receipts of $25,000 or less, it must submit Form 990-N, Electronic Notice (e-Postcard) for Tax-Exempt Organizations Not Required to file Form 990-EZ. For tax years beginning in 2008, if an organization has gross receipts less than $1,000,000 and total assets at the end of the year less than $2,500,000, it may choose to file Form 990-EZ, Short Form Return of Organization Exempt From Income Tax, instead of Form 990. Form 990- EZ, 990, and 990-N are due every year by the 15th day of the 5th month after the close of your tax year.
Campaign Finance Information Center - State Information* * Look at this site for reporting requirements before making any Contributions to State/City offices or Federal Candidates. Some States require Segregated funds and/or State Political Action Committee registration. Federal PACs must be registered as well.
4. Set up dues checkoff with the employer to collect union dues. Contact National Secretary-Treasurer Gary Ruffner immediately if members object to paying union dues. Request the objecting member to submit their objection in writing to UWUA National Secretary-Treasurer Gary Ruffner at 815 16th Street, NW, Washington, DC 20006.
5. Open a checking account with your EIN number, order checks with two signature lines and have the bank agree that two authorized signatures are required to process any checks. Only authorize the Treasurer and one or two officers to sign checks and make sure there are two live signatures on each check. Do not pre-sign blank checks. Keep and retain all records and receipts for 7 years. Speak to the bank representative about Federal Deposit Coupons for tax payments after reviewing IRS Circular E Publication which outlines tax responsibilities. IRS Forms and instruction listing You will need to get a Circular E -Supplemental Tax Guide Publication 15-A to deduct the proper amounts for taxes, Social Security, Medicare. You will have to pay the employer match for Social Security and medicare payments. Contact your state government and city tax departments for those taxes. Review the employer requirements for matching Social Security and Medicare payments and include them in the appropriate tax payment schedules using quarterly, monthly or electronic 941 payments. Use a ledger, accounting program, or spreadsheet program to record these taxes for purposes computing amounts for W-3, W-2, state and Federal tax filing and reporting requirements. You can purchase Standard W-2 and W-3 forms for reporting annual tax payments at an office supply store or online. Be aware of deadlines for submitting these forms to the individual due by January 31 for each employee. The W-3 form is due by the last day of February.
6. NEW REVENUE LIMITS FOR 990 AND 990-EZ FILERS FORM 990, 990-EZ, and 990-N for all local unionsForm 990-EZ Filing Amounts for 2008–2010Form 990-EZ, Short Form Return of Organization Exempt From Income Tax, may be filed by most organizations with gross receipts and total assets below certain amounts. For calendar or fiscal years beginning in 2008, most organizations with gross receipts less than $1,000,000 and total assets less than $2,500,000 may choose to file Form 990 or Form 990-EZ. (For 2007, these amounts were less than $100,000 gross receipts and $250,000 total assets.) For 2009, most organizations with gross receipts less than $500,000 and total assets less than $1,250,000 may choose to file Form 990 or Form 990-EZ. Beginning in 2010, most organizations with gross receipts less than $200,000 and total assets less than $500,000 may file either Form 990 or Form 990-EZ.
Although Form 990-EZ was not redesigned for 2008, some changes have been made. Organizations that file the 2008 Form 990-EZ must review the instructions for Schedules A, B, C, E, G, L, and N to determine whether they must now report any of their activities or information on those schedules. Form 990-EZ filers will not be required to complete any of the other 2008 Form 990 schedules.
New annual electronic filing requirement for small tax-exempt organizations
Many small tax-exempt organizations now must file new Form 990-N, Electronic Notice (e-Postcard) for Tax-Exempt Organizations Not Required to File Form 990 or 990-EZ, if they choose not to file Form 990 or Form 990-EZ. See the IRS website at www.irs.gov and click on the Form 990-N (e-Postcard) tab for more information. Form 990- EZ, 990, and 990-N are due every year by the 15th day of the 5th month after the close of your tax year. THESE REVENUE LIMITS WILL REDUCE EACH YEAR – BE SURE TO CHECK THE LIMITS EACH YEAR
12. Have all employees fill out a W-4 certificate so that you deduct the proper tax amounts and have record of the proper information from the employee for witholding. IRS Forms and instruction listing
13. Give all Officers and Trustees of the Local a copy of the Internal Financial Controls publication of the Dept of Labor’s LMRDA. Review Recordkeeping requirements and other guidelines that are also contained in the 10 Step audit procedures booklet listed below.
14. We recommend that semi-annual (every 6 months or twice a year) audits be performend wth Trustees to verify expenditures and account balances with receipts and statements. If receipts are more than $200,000 per year, you must arrange for an accredited accountant to perform an annual audit in accordance with the UWUA Constitution, unless you perform a semi-annual audit with 3-5 trustees. Article VI, Section 14. Click here for the semi-annual audit form
15. For those locals with less than $200,000 in receipts, you should establish the 10 step audit procedure recommended by the Department of Labor and you must send the UWUA a copy of Semi-Annual Audit Report Form which must be performed and its findings reported to the Local as required in the UWUA Constitution, Article VI, Section 14Click here for the semi-annual audit form
· Trace canceled checks to the bank statements and disbursements journal
· Scan the disbursements journal and investigate unusual entries
· Trace employer dues checkoffs to the receipts journal and bank statements
· Confirm that receipts from all other sources have been properly recorded and deposited
· Identify all bank accounts, verify their ending balances, and review withdrawals/transfers
· Inventory fixed assets, ie. computers, copiers, furniture etc.
· Confirm that the LM annual financial report for the latest completed fiscal year was filed on time. Consult the Department of Labor Guidelines for filing requirements. You must file an LM-1 form with a copy of your Bylaws with the Department of labor with your EIN within 90 days of your certification as a union. Every covered union must adopt a constitution and bylaws and file two copies with OLMS, along with a Labor Organization Information Report, Form LM-1, providing certain information about the structure, practices, and procedures of the union. When Due: The initial information report, Form LM-1, is due within 90 days after the union first becomes subject to the LMRDA or the CSRA. An LM-2, 3 or 4 must be filed according to the income and assets of the Local Union. Consult the Department of Labor Guidelines for filing requirements.
· Ensure that all officers and employees who handle funds are adequately bonded. The Department of Labor requires that your Local Union must be bonded according to the assets and income of the Local Union. The National Union will arrange for bonding and bill the local for the required coverage and premium. The bonding is normally a 3 year policy, and the Local will be billed once bonding is arranged. Contact Gary Ruffner, National Secretary-Treasurer and give him the detail of the Local’s assets, number of members paying dues, amount of dues collected per week, bi-weekly or monthly if dues are collected other than by the week. You should complete one of the National’s semi-annual audit forms to provide this information to the National Union.
· Confirm that no officers or employees were loaned more than $2,000 by your union.
ADDITIONAL AUDIT RECOMMENDATIONS by National Secretary-Treasurer Gary Ruffner - Check to make sure tax requirements for City, State, Federal, Social Security and Medicare taxes, employer Social Security & Medicare matching taxes and unemployment taxes are being paid on wages and be sure to file form 990 NOTE: Penalties can be assessed for noncompliance with payroll tax requirements and form 990. If you have less than $25,000 in revenue and fail to file the 990-N you can lose your tax exempt status.
Pay Per Capita dues to the National Union by the 15th of the following month for the previous month. Per Capita payments are to be paid to the National Union by the 15th of the following month. Payments must have the appropriate verification of per capita, see the UWUA Per Capita Verification Policy and Per Capita Verification Form and Per Capita Policy . Refer to the National Constitution, Article VI and the most recent UWUA Per Capita 2009, and UWUA Per Capita 2008, for Per Capita due to the National Union . Monthly Per Capita Payment Form, 2009 Monthly Per Capita Payment Form Review the National Union’s policy on per capita payments and Consult the Regional Director in your area if you have any problems collecting per capita. Article VI, Section 14. All locals unions with yearly incomes of $200,000 or more shall engage an accredited public accountant to make a yearly audit of their financial accounts. Unless their financial accounts are audited by an accredited public accountant, at least annually, it shall be the duty of each local union and each council to establish an auditing committee either by election by the membership, or appointment by the local’s or council’s President with ratification by the membership. This committee should be composed of from 3 to 5 members, and its duty shall be to make a semi-annual examination of the financial accounts of the local union or council, and to report its findings in writing to the membership, with a copy sent to the National Office.
1. Send Per Capita Payments with verification information, provided to the Local by the Company deducting dues, to National Secretary-Treasurer Gary M. Ruffner. Please note that some forms have the preceding Secretary-Treasurers name on them and such forms in the future will be printed with the National Secretary-Treasurer’s title and no corresponding name to save on reprinting costs. 2009 Monthly Per Capita Payment Form.
2. Review the Online Interactive Web Site developed by National Secretary-Treasurer Gary M. Ruffner with outlined content and requirements by CPA Linda Jardine. Click on any underlined portion of this page or that site to be automatically taken to that page or location for the latest and most accurate information.
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