Frequently Asked Questions

 PDF icon The Financial Standards Code - Frequently Asked Questions 

When is my annual Surety Bond Report due?

Your annual Surety Bond Report is due March 1st each year.
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When is my Local Union Annual Financial Report (LUAFR) due?

Your LUAFR is due May 15th or 4 ½ months after your fiscal year end.
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If I am a large affiliate (Council or Local with 2,000 or more members, what reports do I submit to AFSCME?

Annual Audits, Annual Budgets and Quarterly Internal Financial Statements to include a Balance Sheet and Income Statement.
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What are the requirements for filing an IRS Form 990-N Electronic Postcard?

Your gross receipts for the previous year are $50,000 or less.  You must file every year by May 15th or 4 ½ months after your fiscal year end.
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What are the requirements for filing an IRS Form 990-EZ?

Your gross receipts for the previous year are over $50,000 and less than $200,000 and your total assets are less than $500,000.
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What are the requirements for filing an IRS Form 990?

Your gross receipts for the previous year are $200,000 or more or your total assets are $500,000 or more.
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What happens if I don’t file my IRS Form 990-N Electronic Postcard on time?

There is no penalty for late filing of IRS Form 990-N Electronic Postcard, but failure to file for 3 consecutive years will result in the IRS automatically revoking your affiliate’s tax exempt status.
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What happens if I don’t file my IRS Form 990-EZ or 990 on time?

If you don’t file your IRS Form 990-EZ or 990 by the filing deadline, there is a $20 per day penalty up to a maximum fine of $10,000 or 5% of your affiliate’s gross receipts for the year.  Also failure to file for 3 consecutive years will result in the IRS automatically revoking your affiliate’s tax exempt status.
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Who files annual forms with the Department of Labor?

< p>Affiliates representing private sector employees must file annually with the Department of Labor.
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What are the requirements for filing an LM-2 Form?

Affiliates representing private sector employees with annual receipts greater than $250,000 must file Department of Labor Form LM-2 annually.
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What are the requirements for filing an LM-3 Form?

Affiliates representing private sector employees with annual receipts less than $250,000 and more than $9,999 must file Department of Labor Form LM-3 annually.
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What are the requirements for filing an LM-4 Form?

Affiliates representing private sector employees with annual receipts less than $10,000 must file Department of Labor Form LM-4 annually.
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What is IRS Form 990-T and who must file it?

IRS Form 990-T is a tax form that is required if your affiliate is involved in taxable activities.
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What is my affiliate’s employer identification number?

All newly chartered affiliates must file for an Employer Identification Number (EIN) immediately with the IRS using IRS Form SS-4.  When the affiliate’s number is received from the IRS, this will be their identifying number as long as they exist.  Affiliates only apply for this number once when they are newly chartered.
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Are affiliate officers considered employees of the affiliate?

If an affiliate pays their officers an allowance, a stipend, reimburses their dues or pays them lost time, those payments are considered to be taxable W-2 payments.
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What payroll tax forms are required if an affiliate pays their officers?

  •  Quarterly IRS Form 941’s due April 30th, July 31st, October 31st and January 31st
  •  Annual IRS Form 940’s due by January 31st for the previous year
  •  Annual IRS Form W-2s due to the officer by January 31st
  • Annual IRS Form W-3 used to transmit IRS Form W-2s to the Social Security Administration – due February 28th for the previous year
  • IRS Form W-4 should be on file for each officer receiving taxable payments

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What taxes should be withheld from officer allowances, stipends, reimbursed dues, etc.?

At a minimum the affiliate must withhold 7.65% from the payment to cover the social security and medicare taxes.  The affiliate must match those taxes and deposit 15.3% with the IRS.
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When does an affiliate issue IRS Form 1099-MISC?

This form is used to report all taxable non-salary payments of $600 or more made to all individuals during the calendar year.  A 1099 cannot be issued for officer allowances, stipends, reimbursed dues or lost time payments.  Those payments must be reported on IRS Form W-2.
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What is lost time?

Lost time is a payment made to an officer or member as compensation for taking uncompensated leave from their job to perform union duties.  Lost time is considered to be payment of wages.  Taxes must be withheld and payroll tax forms must be filed for all lost time payments.
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When is my affiliate allowed to pay a non-taxable meal per diem?

When an affiliate officer or member is overnight out-of-town on union-related business, they can receive a non-taxable meal allowance based on the city where they are spending the night.  The city rates are set by the Federal Government and are updated on October 1st each year.  On the 1st and last day of travel, officers and/or members can only receive 75% of the non-taxable meal per diem rate.  All officers and/or members must submit an expense report with documentation of the overnight stays to justify the payment of the non-taxable meal per diem.  If the daily payment exceeds the city rate where the officer and/or member spent the night, the excess per diem is considered to be taxable and must be included on an IRS Form W-2.
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