1 U.S. Department of U.S. Department of Labor Labor Office of Labor-Management Standards (OLMS) Bookkeeping for the New Labor Organization Annual Report Form LM-2
Feb 06, 2016
1
U.S. Department of LaborU.S. Department of LaborOffice of Labor-Management Standards
(OLMS)
Bookkeeping for the New Labor Organization Annual Report
Form LM-2
2
Overview
• Option 1 – Set up chart of accounts using categories that mirror the LM-2 categories
• Option 2 - You may also keep your existing chart of accounts and add the LM-2 categories for bookkeeping classifications
• Option 3 – Book to both the union accounts and LM-2 accounts and use the “LM Contra Account” to offset the double-booking
3
Overview
• Each transaction should be assigned to an LM-2 bookkeeping account
• Individual credit card transactions must be entered into the system and assigned to the proper LM-2 bookkeeping categories
• Data from accounting software reports can be exported to a spreadsheet program in order to be imported into the LM-2 software
4
Chart of Accounts
This is a sample LM-2 chart of accounts
Account Description Account Type
General Fund Checking Cash
36 Dues/Agency Fees Income
37 Per Capita Tax Recv’d Income
38 Fees, Fines, Assessments Income
5
Chart of Accounts
Account Description Account Type
39 Sale of Supplies Income
40 Interest Income
41 Dividends Income
42 Rent Income
43 Sale of Invest./Fix Asset Income
44 Loans Obtained Income
6
Chart of Accounts
Account Description Account Type
45 Repayment of Loans Income
46 On Behalf of Affil. Income
47 From Members for Disb. Income
48 Other Receipts Income
7
Chart of Accounts
Account Description Account Type
50 Repr. Activities Expense
51 Political Activ/Lobby Expense
52 Contrib, Gifts, Grants Expense
53 General Overhead Expense
54 Union Administration Expense
55 Benefits Expense
8
Chart of Accounts
Account Description Account Type
56 Per Capita Tax Expense
57 Strike Benefits Expense
58 Fees, Fines, Assessments Expense
59 Supplies for Resale Expense
60 Purchase of Inv/Fix Asst Expense
61 Loans Made Expense
9
Chart of Accounts
Account Description Account Type
62 Repayment of Loans Expense
63 To Aff of Funds Collected Expense
64 On Behalf of Members Expense
65 Direct Taxes Expense
10
Chart of Accounts
Account Description Account Type
67a Payroll Withholding Expense
- Off. 1 Federal Withholding Expense
- Off. 1 Medicare Expense
- Off. 1 Social Security Expense
- Off. 1 State Withholding Expense
- Off. 1 Other Withholding Expense
11
Chart of Accounts
Account Description Account Type
67a Payroll Withholding Expense
- Emp. 1 Federal Withholding Expense
- Emp. 1 Medicare Expense
- Emp. 1 Social Security Expense
- Emp. 1 State Withholding Expense
- Emp. 1 Other Withholding Expense
12
Chart of Accounts
Account Description Account Type
67b Payroll Withholding Disbursed Expense
Schedule 11 Officer 1 Expense
- Schedule 11(D) Salary Expense
- Schedule 11(E) Allow Expense
- Schedule 11(F) Off. Bus. Expense
- Schedule 11(G) Other Expense
13
Chart of Accounts
Account Description Account Type
Schedule 11 Officer 2 Expense
- Schedule 11(D) Salary Expense
- Schedule 11(E) Allow Expense
- Schedule 11(F) Off. Bus. Expense
- Schedule 11(G) Other Expense
14
Chart of Accounts
Account Description Account Type
Schedule 12 Employee 1 Expense
- Schedule 12(D) Salary Expense
- Schedule 12(E) Allow Expense
- Schedule 12(F) Off. Bus. Expense
- Schedule 12(G) Other Expense
15
Chart of Accounts
Account Description Account Type
Schedule 12 Employee 2 Expense
- Schedule 12(D) Salary Expense
- Schedule 12(E) Allow Expense
- Schedule 12(F) Off. Bus. Expense
- Schedule 12(G) Other Expense
16
Your Chart of Accounts – Your Chart of Accounts – Options 2 and 3Options 2 and 3
17
Keeping your Chart of Accounts
• If you decide to keep your existing chart of accounts, you must add the LM-2 categories identified above.
18
Keeping your Chart of Accounts
• List your accounts on the Chart of Accounts and list LM-2 categories in that same number series.
Example: Officer 1 incurs expenses for reimbursed meals and lodging as well as auto expenses for a union car assigned to him/her.
19
Keeping your Chart of Accounts
Travel Expense
Auto Expense
Travel Expense
- Schedule 11(F) Off. Bus. – Officer 1 Expense
Union Account Only
Union and LM-2 Accounts
Auto Expense
- Schedule 11(F) Off. Bus. – Officer 1 Expense
20
Account Description Account Type
Travel Expense
- Schedule 11(F) Off. Bus. Officer 1 Expense
- Schedule 11(G) Other Officer 1 Expenses
- Schedule 12(F) Off. Bus. Employee 1 Expense
- Schedule 12(G) Other Employee 1 Expense
Keeping your Chart of Accounts
Union and LM-2 Accounts for Travel
21
Account Description Account Type
Travel Expense
- 50 Repr. Activities Expenses
- 51 Political Activ/Lobby Expenses
- 52 Contrib, Gifts, Grants Expenses
- 53 General Overhead Expenses
- 54 Union Administration Expenses
Keeping your Chart of Accounts
Union and LM-2 Accounts for Travel
22
Keeping your Chart of Accounts
Union and LM-2 Accounts for TravelAn Example – The union credit card is used by Officer 1 to charge expenses including hotel charges ($198 – Hyatt Hotel) and meals ($70 – Outback Steakhouse) related to negotiating a collective bargaining agreement. The $198 – Hyatt Hotel charge included a meal of $30 and an in-room movie charge of $11. The union also charged a conference room for two days of negotiations ($200 – Hyatt Hotel). Roundtrip airfare of $250 was also charged for travel to and from negotiations.
23
Account Description Account TypeAmount Booked
Travel Expense
- Schedule 11(F) Off. Bus. Officer 1 Expense $100.00
- Schedule 11(G) Other Officer 1 Expenses $11.00
- 50 Repr. Activities Expenses $250.00
Negotiations Expense
- 50 Repr. Activities Expenses $357.00
Keeping your Chart of Accounts – Option 2
Proper Bookkeeping
24
Negative Splits – Union & LM-2 Accounts
LM Contra Account Expense ($718.00)
Account Description Account TypeAmount Booked
Travel Expense $361.00
Schedule 11(F) Off. Bus. Officer 1 Expense $100.00
Schedule 11(G) Other Officer 1 Expenses $11.00
50 Repr. Activities Expenses $250.00
Negotiations Expense $357.00
50 Repr. Activities Expenses $357.00
Keeping your Chart of Accounts – Option 3
25
Another Example
Auto $50.00
Schedule 11(F) Off. Bus. Officer 1 $50.00
Travel $200.00
Schedule 11(F) Off. Bus. Officer 1 $200.00
Union Check written to Officer 1 for reimbursed Travel and Auto expense
LM Contra Account ($250.00)
Keeping your Chart of Accounts – Option 3