The 2nd sequencing step in preparing a Form 990 is identifying "current" Trustees-Directors and Officers as well as POTENTIAL Key Employees and, finally, current High 5's and "formers". To do this, and to complete the relevant Core Form and Schedule J Parts that result, one must know what is "reportable compensation," applicable compensation exceptions, and the specific thresholds for Key Employees, High 5's, and "formers." The 990 discloses both all Trustees-Directors, Officers and Key Employees (a/k/a "TDOKEs") and High 5s and reports ALL amounts of "reportable" and "other" compensation provided to them by the filer and related organizations. If all of that seems exhausting, take heart!
Eve Borenstein, who has been long-referenced (including by Congress) as "the Queen of the 990" for her understanding of and ability to explain the 2008-and-forward complexities of the 990, particularly with respect to Part VII reporting, here provides her extensive materials and practical tips on ALL of the relevant definitions, exceptions, and reporting demands for both Part VII-A of the Core Form and the Schedule J's Part II.
This event may be a rebroadcast of a live event and the instructor will be available to answer your questions during the event.Learning Objectives:
After attending this presentation you will be able to...
- Populate the current TDOKE pool by reference to both a filer's Board & Officer chart and its calendar year staff compensation printout along with testing of all KE's duties and compensation from related organizations
- Appreciate the utility of the two $10,000 exceptions (one regarding reportable compensation from a single related organization and the second regarding certain types of "other compensation") in avoiding Schedule J
- Understand the inquiries and reasonable efforts necessary to fully report compensation provided by the filer and all other relevant parties to current and former TDOKE and High 5's
- Know the basics of Part VII compensation reporting when a common paymaster is in use
- Be able to discern what compensation is required to reported as paid by the filer when an unrelated organization is paying some or all of the remuneration received by an individual for their service as the filer's Trustee-Director, Officer or employee
The major topics that will be covered in this class include:
- Review of who is to be reported in Part VII-A as a current or former legally or quasi-legal "in-charge" (i.e., Trustee-Director, Officer, Key Employee -- a group also known as "TDOKEs") or as a High 5
- Exploration of the challenges in determining: current Key Employees versus Officers; former (relating to "current" status in prior-years) TDOKEs and/or High 5s; and who qualifies as a Trustee-Director in circumstances of limited involvement with the filer's governance
- Compensation reporting: the required "dial back" to the calendar year for organizations with a ye other than 12/31; handling of compensation provided from "related organizations" (including reporting exceptions) versus that coming from certain unrelated payors
- Review of compensation "buckets": "reportable compensation" versus "other compensation" and the applicable exceptions for Core Form reporting
- Additional compensation detailing that is required on Schedule J's Part II when an individual TDOKE's or High 5's circumstances "trigger" application of that schedule
- Complex reporting situations: individuals procured from management companies or from employee-leasing organizations; common paymaster reporting scenarios; payment to an individual for services they are providing the filer by an unrelated organization
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