How Employers Can Comply with the DOL’s New Overtime Rules
After more than four years in the draft proposal stage and federal lawsuits, Congress recently enacted new overtime rules for white-collar workers.
Changes to Net Operating Losses of Unrelated Business Activities for Nonprofits
Nonprofits are now required to silo Net Operating Losses (NOLs) from one unrelated business activity so that it doesn’t create a reduction of taxable income from another profitable unrelated business activity.
IRS Requires Tax-Exempt Organizations to File Forms Electronically
Many tax-exempt organizations have filed their 990 series forms electronically for several years. Some smaller organizations are still submitting their 990, 990-EZ or 990-PF in paper form to the Internal Revenue Service (IRS). The Taxpayer First Act enacted July 1, 2019 includes mandates for all tax-exempt organizations to file their forms electronically.
Repeal of Nonprofit Parking Tax Announced
Congress has passed a $1.4 Trillion spending bill to avoid a government shutdown which includes a repeal of the tax on nonprofit organizations that provided qualified transportation fringe benefits, otherwise known as the “parking tax”. Any nonprofit that may have paid tax on the transportation fringe benefits should file an amended 990T to claim a refund of the taxes paid.
Nonprofits Subject to High Tax Over Executive Compensation
The tax reform bill of 2017 brought changes to the deductible amount from a for-profit company and now nonprofit executive’s compensation deductions are changing, too. Code section 4960 further explains the 21% excise tax on the amount of compensation paid by an applicable tax-exempt organization, ATEO.
Recording Contributions with Donor-Imposed Restrictions
Donor contributions make up a lot of Virginia’s nonprofits’ annual revenue. Even though the organizations are not relying only on these contributions, nonprofit management has to understand how to account for these contributions in one of two ways.
Tracking Not-for-Profit Grants and Program Metrics
Not properly tracking grants and program metrics daily and waiting too late to record them are all too common mistakes not-for-profits make. The good news is there are options available to tackle this problem. Many not-for-profit organizations are relying on outsourced accounting methods to help ensure nothing gets missed or delayed.
Charitable Donations vs. Exchange Transactions
Not-for-profits have to report all donations they receive throughout the year. But not all donations are created equal. It can be difficult to determine if the funds are a charitable donation or an exchange transaction. Read on and learn what factors can help determine how the funds should be reported.
Where Should Not-for-Profits Report Membership Dues on Form 990?
Are membership dues paid to nonprofits considered a donation or program revenue? It comes down to whether the member receives a significant benefit or an insignificant one. Understanding the difference ensures nonprofits report these contributions correctly on Form 990.
New Revenue Recognition Standards are Now Effective
Everything has changed with FASB’s new revenue recognition standards and it’s time for all remaining organizations to implement the new revenue recognition standards that originated in May 2014.