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| November 5, 2008 DOL Home > ESA > OLMS > Form LM-2 > FAQs > Statement B |  |
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Office of Labor-Management Standards (OLMS)
Form LM-2 - Frequently Asked QuestionsStatement B- Receipts and Disbursements Additions are made regularly to the Frequently Asked Questions, so please check these pages often for updates. If you have a question that is not addressed here, you may email your question to olms-public@dol.gov.
Q. What is the purpose of Statement B? A. The purpose of Statement B is to report the flow of cash in and out of the labor organization during the reporting period. Transfers between separate bank accounts or between special funds of the labor organization, such as vacation or strike funds, do not represent the flow of cash in and out of the labor organization. Therefore, you should not report these transfers as receipts and disbursements of the labor organization. For example, do not report a transfer of cash from the labor organization's savings account to its checking account. Likewise, the use of funds reported in Item 22 (Cash) of Statement A to purchase certificates of deposit and the redemption of certificates of deposit should not be reported in Statement B. Q. Does Statement B permit "netting"? A. No. Since Statement B reports all cash flowing in and out of the labor organization, "netting" is not permitted. "Netting" is the offsetting of receipts against disbursements and reporting only the balance (net) as either a receipt or disbursement. For example, if an officer received $1,000 from the labor organization for convention expenses, used only $800 and returned the remaining $200, the $1,000 disbursement must be reported in Schedule 11 (All Officers and Disbursements to Officers) and the appropriate disbursement Schedule 15 through 21, and the $200 receipt must be reported in Schedule 14 (Other Receipts). It would be incorrect to report only an $800 net disbursement to the officer. Q. Would it be a fair statement to make that we do not need to track disbursements into functional categories for per capita tax, strike benefits, fines, assessments, supplies for resale, purchase of investments and fixed assets, loans made, repayments of loans obtained, direct taxes, withholding taxes and payroll deductions as they are reported elsewhere on Statement B? A. That is correct. Disbursements that are reported in Items 55 through 67 are not allocated among the functional categories in Schedules 15 through 19. Q. How are receipts and disbursements by an agent for a labor organization treated? A. Receipts and disbursements by an agent on behalf of the labor organization are considered receipts and disbursements of the labor organization and must be reported in the same detail as other receipts and disbursements. For example, if the labor organization owns a building managed by a rental agent, the agent's rental receipts and disbursements for expenses must be reported on the labor organization's Form LM-2. Also, if the labor organization's parent body or an intermediate body functions as an agent receiving and disbursing funds of the labor organization to third parties, these receipts and disbursements must be reported on the labor organization's Form LM-2. For example, if a parent body receives the labor organization's dues and makes disbursements from that money to pay the labor organization's bills (such as payments to an attorney for legal services), those receipts and disbursements must be reported on the labor organization's Form LM-2. Q. What must be reported in Item 36 (Dues and Agency Fees) of Statement B of the Form LM-2? A. Enter the total dues including regular dues, working dues, etc. received by the labor organization. Include dues received directly by the organization from members, dues received from employers through a checkoff arrangement, and dues transmitted to the organization by a parent body or other affiliate. Report the full dues received, including any portion that will later be transmitted to an intermediate or parent body as per capita tax. Also report in Item 36 payments in lieu of dues received from any nonmember employees as a condition of employment under a union security provision in a collective bargaining agreement. If an intermediate or parent body receives dues checkoff directly from an employer on behalf of the reporting organization, do not report in Item 36 the portion retained by that organization for per capita tax or other purposes, such as a special assessment. Any amounts retained by the intermediate body or parent body other than per capita tax must be explained in Item 69 (Additional Information). For example, if the intermediate body or parent body retained $500 of the reporting organization's dues checkoff as payment for supplies purchased from that body by the reporting organization, this should be explained in Item 69, but the $500 should not be reported as a receipt or disbursement on either organization's Form LM-2. If, however, the intermediate body or parent body disbursed part of the reporting organization's dues checkoff on that organization's behalf, this amount should be included in Item 36 and in the appropriate disbursement item on the reporting organization's Form LM-2. For example, if the intermediate body or parent body disbursed $500 of the reporting organization's dues checkoff to an attorney who had provided lobbying services to the reporting organization, this amount should be reported in Item 36 and as a disbursement in Schedule 16 (Political Activities and Lobbying) of the reporting organization's Form LM-2. Do not report in Item 36 dues that the reporting organization collected on behalf of other organizations for transmittal to them. For example, if the reporting organization received dues from a member of an affiliate who worked in the reporting organization's jurisdiction, the dues collected on the affiliate's behalf must be reported in Item 46 (On Behalf of Affiliates for Transmittal to Them). Q. Pursuant to a dues checkoff arrangement, contractors withhold working dues from members and remit the dues monthly to the union. The remittance from a contractor will usually exceed $5,000 but the amount for each member will never exceed $5,000. Does the receipt from the contractor need to be itemized on an initial itemization page for Schedule 14 (Other Receipts)? A. Dues received through a checkoff arrangement are not reported in Schedule 14. They should be reported in Item 36 and do not have to be itemized. Schedule 14 is only for receipts not covered by Items 36-47. Q. What must be reported in Item 37 (Per Capita Tax) of Statement B of the Form LM-2? A. Enter the total per capita tax received by your organization if your organization is an intermediate or parent body; otherwise, enter "0" in Item 37. Include the per capita tax portion of dues received directly by your organization from members of affiliates, per capita tax received from subordinates, either directly or through intermediaries, and the per capita tax portion of dues received through a checkoff arrangement whereby local dues are remitted directly to an intermediate or parent body by employers. Do not include dues collected on behalf of subordinate organizations for transmittal to them. For example, if a parent body received dues checkoff directly from an employer and returned the local's portion of the dues, the parent body must report the dues received on behalf of the local in Item 46 (On Behalf of Affiliates for Transmittal to Them). Q. What must be reported in Item 38 (Fees, Fine, Assessments, Work Permits) of Statement B of the revised Form LM-2? A. Enter the labor organization's receipts from fees, fines, assessments, and work permits. Receipts by the labor organization on behalf of affiliates for transmittal to them must be reported in Item 46 (On Behalf of Affiliates for Transmittal to Them). Q. What must be reported in Item 39 (Sale of Supplies) of Statement B of the Form LM-2? A. Enter the total amount received by the labor organization from the sale of supplies such as union logo clothing, lapel pins, bumper stickers, etc. Q. What must be reported in Item 40 (Interest) of Statement B of the revised Form LM-2? A. Enter the total amount of interest received by the labor organization from savings accounts, bonds, mortgages, loans, and all other sources. Q. What must be reported in Item 41 (Dividends) of Statement B of the Form LM-2? A. Enter the total amount of dividends from stocks and other investments received by the labor organization. Do not include "dividends" from credit unions, savings and loan associations, etc., which must be reported in Item 40 (Interest). Q. What must be reported in Item 42 (Rents) of Statement B of the Form LM-2? A. Enter the total amount of rents received by the labor organization from all sources. Q. What must be reported in Item 43 (Sale of Investments and Fixed Assets) of Statement B of the Form LM-2? A. Enter the total reported on Line 15 of Schedule 3 (Sale of Investments and Fixed Assets). Q. What must be reported in Item 44 (Loans Obtained) of Statement B of the revised Form LM-2? A. Enter the total reported on Line 13, Column (C) of Schedule 9 (Loans Payable). Q. What must be reported in Item 45 (Repayment of Loans Made) of Statement B of the Form LM-2? A. Enter the total reported on Line 6, Column (D)(1) of Schedule 2 (Loans Receivable). Q. What must be reported in Item 46 (On Behalf of Affiliates for Transmittal to Them) of Statement B of the Form LM-2? A. Enter the total amount of dues, fees, fines, assessments, and work permit fees received by the labor organization, through a checkoff arrangement or otherwise, on behalf of affiliates for transmittal to them. Do not include the amount withheld by the labor organization for per capita taxes or other purposes, such as loan repayments, which must be reported elsewhere in Statement B. When the receipts reported in Item 46 are transmitted, the disbursement must be reported in related Item 63 (To Affiliates of Funds Collected on Their Behalf). Q. What must be reported in Item 47 (From Members for Disbursement on Their Behalf) of Statement B of the Form LM-2? A. Enter the total receipts from members that are specifically designated by them for disbursement on their behalf; for example, contributions from members for transmittal by the labor organization to charities. When receipts that are reported in Item 47 are transmitted, the disbursement must be reported in related Item 64 (On Behalf of Individual Members). Q. What must be reported in Item 48 (Other Receipts) of Statement B of the Form LM-2? A. Enter the total reported on Summary Schedule 14, Line 3. Q. What must be reported in Item 50 (Representational Activities) of Statement B of the Form LM-2? A. Enter the total from Summary Schedule 15, Line 6. Q. What must be reported in Item 51 (Political Activities and Lobbying) of Statement B of the Form LM-2? A. Enter the total from Summary Schedule 16, Line 6. Q. What must be reported in Item 52 (Contributions, Gifts, and Grants) of Statement B of the Form LM-2? A. Enter the total from Summary Schedule 17, Line 6. Q. What must be reported in Item 53 (General Overhead) of Statement B of the Form LM-2? A. Enter the total from Summary Schedule 18, Line 6. Q. What must be reported in Item 54 (Union Administration) of Statement B of the Form LM-2? A. Enter the total from Summary Schedule 19, Line 6. Q. What must be reported in Item 55 (Benefits) of Statement B of the Form LM-2? A. Enter the total from Line 23 of Schedule 20. Q. What must be reported in Item 56 (Per Capita Tax) of Statement B of the Form LM-2? A. Enter your organization's total amount of per capita tax paid as a condition or requirement of affiliation with your parent national or international union, state and local central bodies, a conference, joint or system board, joint council, federation, or other labor organization. Q. What must be reported in Item 57 (Strike Benefits) of Statement B of the Form LM-2? A. Enter the total amount of all disbursements made to, or on behalf of the members (or agency fee paying nonmembers) of the labor organization, and others, associated with strikes (including recognitional strikes), work stoppages and lockouts during the reporting period. Q. What must be reported in Item 58 (Fees, Fines, Assessments, etc.) of Statement B of the Form LM-2? A. Enter the total amount of fees, fines, assessments, and similar disbursements made by the labor organization to a parent body or other labor organization. Q. What must be reported in Item 59 (Supplies for Resale) of Statement B of the Form LM-2? A. Enter the labor organization's total disbursements for purchases of supplies such as union logo clothing, lapel pins, bumper stickers, etc. for resale. Q. What must be reported in Item 60 (Purchase of Investments and Fixed Assets) of Statement B of the Form LM-2? A. Enter the total reported on Line 15 of Schedule 4 (Purchase of Investments and Fixed Assets). Q. What must be reported in Item 61 (Loans Made) of Statement B of the Form LM-2? A. Enter the total reported on Line 6, Column (C) of Schedule 2 (Loans Receivable). Q. What must be reported in Item 62 (Repayment of Loans Obtained) of Statement B of the Form LM-2? A. Enter the total reported on Line 13, Column (D)(1) of Schedule 9 (Loans Payable). Q. What must be reported in Item 63 (To Affiliates of Funds Collected on Their Behalf) of Statement B of the Form LM-2? A. Enter the total disbursements of funds collected on behalf of affiliates by the labor organization. This amount usually is the same as the amount reported in related Item 46 (On Behalf of Affiliate for Transmittal to Them). Any such funds not disbursed by the end of the reporting period are liabilities of the labor organization and must be reported in Schedule 10 (Other Liabilities). Q. What must be reported in Item 64 (On Behalf of Individual Members) of Statement B of the Form LM-2? A. Enter the total disbursements of funds collected from members by the labor organization that were specifically designated by them for disbursement on their behalf. This amount usually is the same as the amount reported in related Item 47 (From Members for Disbursement on Their Behalf). Any such funds not disbursed by the end of the reporting period are liabilities of the labor organization and must be reported in Schedule 10 (Other Liabilities). Q. What must be reported in Item 65 (Direct Taxes) of Statement B of the Form LM-2? A. Enter all taxes assessed against and paid by your organization, including your organization's FICA taxes as an employer. Do not include disbursements for the transmittal of taxes withheld from the salaries of officers and employees which must be reported in Item 67 (Withholding Taxes and Other Payroll Deductions). Also, do not include indirect taxes, such as sales and excise taxes, for purchases reported in other disbursement items. Q. What must be reported in Item 67 (Withholding Taxes and Payroll Deductions) of the Form LM-2? A. In Item 67a. enter the total amount of withholding taxes and all other payroll deductions during the reporting period. In Item 67b., enter the total amount of withholding taxes and all other payroll deductions that were disbursed by your organization during the reporting period. This includes your organization's total disbursements to Federal, state, county, and municipal government agencies for the transmittal of taxes withheld from the salaries of officers and employees, including officers' and employees' portion of FICA taxes and all disbursements for the transmittal of other payroll deductions. Subtract Item 67b from Item 67a and enter the result in Item 67c. This is the total amount withheld but not disbursed. Q. Item 67(c), Total Withheld But Not Disbursed - If there is a tax liability and the union made payment on a prior year, how does it report that? A. You may enter either positive or negative numbers on this line. In the situation described, you would enter a negative number. Last Updated: 03/23/07
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