As unions perform their primary function of supporting and advocating for union members, various financial processes are taking place behind the scenes every day. These financial processes include collecting and processing member dues, creating budgets, authorizing and tracking expenses, maintaining financial records, preparing financial reports, managing union bank accounts and credit cards, and conducting internal audits, among others. Managing these various processes—while keeping up with strict regulatory requirements—can be an overwhelming task. Enter: accounting software. Accounting software helps unions manage critical financial processes by streamlining financial operations, providing valuable data, and reducing the opportunity for error and oversight. Let’s take a look at some of the key ways in which accounting software can benefit unions.

Benefits of Accounting Software for Unions

• Streamlines financial processes
  • Tracks income and expenses (this data is essential for monitoring the union’s financial status and creating a union budget)
  • Automates payroll management
  • Aids in financial reporting by generating financial statements
  • Records and manages union dues payments
  • Aids in recordkeeping evaluations
• Automates time-consuming administrative tasks, reducing processing time and allowing employees to focus on other needs of the union
• Improves accuracy of financial records by minimizing manual data entry and reducing opportunities for human error
• Increases transparency in financial processes by providing accurate, easily accessible records that can be shared with union members and other stakeholders
• Provides data for informed decision-making related to union financials such as budgeting and fund allocation
• Helps unions maintain compliance with legal regulations by providing accurate financial records and minimizing errors
• Integrates with other tools and management systems to automatically transfer information between programs

Getting Started

There are several different options when it comes to choosing accounting software for your union. Some popular programs include QuickBooks, Sage, Peachtree, Aptify, and eMembership. When a union first decides to implement new accounting software, employees will need time and training to learn how to operate the new program. RBT CPAs offers QuickBooks training to help our clients learn and understand QuickBooks accounting software. For access to this training or other guidance on implementing accounting software, please don’t hesitate to reach out to RBT CPAs. Whether it’s providing accounting, bookkeeping or outsourced CFO services, assisting with IRS or DOL audits, or offering general financial consulting, RBT CPAs is here to support all of your union’s accounting, audit, tax, and advisory needs. When you partner with RBT CPAs, you can be confident in your union’s financial integrity and compliance, so you can continue to focus on the core goal of representing your members and keeping their best interests top of mind. Give us a call today to find out how we can be Remarkably Better Together.

Do you or your employees use union vehicles for reasons other than work? If yes, you need to be aware of the taxation rules for the personal use of company cars.

What is “personal use of a company vehicle/car”?

Personal use of a company car (PUCC) encompasses any use of a company-owned or company-leased vehicle for purposes not business-related. Examples of personal use include commuting to and from work, use on weekends or during time off, running personal errands, and use by someone other than an employee (i.e., an employee’s spouse or relative).

How do you record personal usage?

It’s important for employees to track both their business and personal use of company vehicles. Without proof that the vehicle was used for business purposes, all use of a company vehicle will be considered personal use by the IRS. Employees should keep detailed records of all business and personal use of the vehicle, including miles traveled, locations, dates, times, and the purpose of the travel.

Is personal use of a company vehicle taxed?

Yes. Personal use of a company car is considered a fringe benefit, meaning it is a form of non-cash compensation provided in addition to a person’s salary. As a fringe benefit, this value is included in the employee’s income and taxed accordingly.

How is the personal use of a company vehicle measured?

There are several methods of measuring personal use of a company car. The rules for calculating the value of fringe benefits are explained in IRS Publication 15-B.

1. General Valuation Method: This is the most common method for measuring the value of fringe benefits. Under this method, the value of the fringe benefit is equal to the Fair Market Value of the vehicle. The Fair Market Value (FMV) is the amount an employee would need to pay a third party to buy or lease the vehicle under the current market conditions in a given geographic location.
2. Cents-Per-Mile Method: The cents-per-mile rule uses the standard mileage reimbursement rate multiplied by an employee’s personal mileage to determine the value of PUCC. The standard mileage reimbursement rate for 2025 is 70 cents per mile. This method can be used if the vehicle is regularly used for business purposes or if the vehicle meets the mileage test (the vehicle is driven at least 10,000 miles during the year, primarily by employees).
3. Commuting-Valuation Method: This method can be used when employees are required to commute to work using a company vehicle and the personal use of the vehicle is limited to commuting and de minimis personal use (i.e., stopping for an errand on the way to or from work). The value of the PUCC is determined by multiplying each one-way commute by $1.50.
4. Lease Value Method: This method determines the PUCC value by multiplying the annual lease value of the vehicle by the percentage of personal miles (personal miles divided by total miles driven). The annual lease value is determined using the IRS’s Annual Lease Value Table.

Summary

If your employees use union-owned vehicles for personal use, it’s important to know that personal use of a company vehicle is a taxable benefit, and that this usage must be reported on employee W-2s. It is crucial for employees to keep detailed records of all vehicle usage for both personal and business purposes. For more information about the taxation of personal use of company cars and for assistance with reporting, please don’t hesitate to call RBT CPAs. You can count on RBT CPAs to support all of your accounting, audit, tax, and advisory needs. Give us a call today and find out how we can be Remarkably Better Together.

Why Should You Prepare a Budget?

Budgeting is a critical component of any organization. The American Federation of Government Employees discusses several reasons why preparing a detailed budget for your union is important:

1. A well-formed budget helps to ensure the financial health and security of your organization.
2. A budget acts as a guide for leadership when making financial decisions.
3. Union members want to know where their membership dues are going. Making the flow of money visible to members indicates transparency and encourages trust in union leadership.
4. Analyzing the union’s financial activity allows the organization to adjust or reallocate money if necessary.

How to Prepare a Budget

The task of creating a budget can seem overwhelming if you don’t know where to start. However, the process can be broken down into a few essential steps.

1. Determine Your Goals and Ask Key Questions

Before preparing a budget for the coming year, it’s important to consider your organization’s goals. Do you want to improve communication with union members? Provide more professional development opportunities? Increase community engagement?

According to the Union Operating Procedures Manual for Communications Workers of America, you should also take a look at your current finances and ask yourself some key questions:

• What percentage of funds is utilized for each area or purpose?
• Are we spending too much in any one area?
• Are we allocating funds to areas that help build and strengthen the union?

Once you have determined the answers to these questions about your organization’s goals and current fund allocation, you’ll be better able to make decisions about the upcoming year’s budget.

Now it’s time to prepare your budget. At its most basic, preparing a budget requires you to estimate two things: future income and future expenses.

2. Predict Income

To predict income for your organization, you’ll need to identify all reliable sources of revenue for the coming year. For unions, membership dues make up the majority of income. To predict revenue from membership dues, you’ll need to first predict membership numbers. The CWA Union Manual suggests you may want to assume the “worst case scenario” for membership estimates, predicting the lowest possible membership numbers and thus erring on the side of caution.

After estimating income from membership dues, you’ll want to identify all other sources of income such as investment earnings, interest on savings, fundraising activities, newsletter advertising, and government grants. You should not include in your estimates any income that is unreliable or unpredictable.

3. Estimate Future Expenses

To estimate your future expenditures, you should first look at your fixed expenses for the year. Fixed expenses include set predictable costs such as officer salaries, payroll taxes, property taxes, rent, phone and internet services, insurance, affiliation fees, etc. You’ll also want to consider variable expenses that change from month to month, including utilities, accounting services, and legal services, among others. You will then need to decide what activities and programs you want to provide for your members in the coming year and determine the cost of each of these. You may want to establish an “additional projects” category to cover any unforeseen programs or projects that might come up throughout the year (CWA).

4. Compare Income to Expenses

Once you have predicted your income and expenses as accurately as possible, it’s time to compare the two numbers to determine whether there is a budget surplus or deficit. If there is a deficit, you will need to cut back on some programs or services. If there is a surplus, you can set the money aside for future use or use the surplus to expand your program and service offerings.

Union Budgeting Tips

• Utilize a pre-made budget template to streamline the budget-making process (a sample union budget template can be found here).
• Take advantage of budgeting software to improve accuracy and efficiency. Many options for budgeting software are available, including QuickBooks’ budgeting function.
• Make sure all expenses are properly documented via bills and receipts.
• Regularly review expenses, comparing them with receipts and bills to ensure they match up.
• Be cautious of the risks of union credit cards. Limit the number of people authorized to use credit cards. It is usually safer to reimburse officers for expenses after the fact than to provide officers with union-owned credit cards (CWA).

Setting a budget is an important aspect of operating a union. For help creating a budget—and for all of your other accounting needs—contact our professionals at RBT CPAs. We’d be happy to work with you to achieve your budget and financial goals.

In the ever-evolving business landscape, local unions are increasingly recognizing the need for strategic financial management. One potential solution that’s gaining significant traction is outsourced accounting.

Access to expertise is the most appealing advantage of outsourcing accounting. Accounting firms are equipped with seasoned professionals who are well-versed in financial regulations, tax laws, and financial management best practices, and they stay up-to-date on changes and evolving trends. These professionals can provide advice on financial decision-making and ensure compliance with tax regulations, minimizing the risk of costly errors and penalties.

Cost savings is another major benefit. Hiring an in-house accounting team can be financially draining, with costs associated with recruitment, training, salaries, benefits, and office space. In contrast, outsourcing accounting offers a flexible pricing structure, allowing unions to pay for the services they need when they need them. This may reduce overhead costs.

By delegating financial management tasks to outsourced accountants, union leaders can concentrate on their primary roles, such as advocating for members’ rights, negotiating collective agreements, and organizing campaigns. What’s more, they get peace of mind that all accounting-related and regulatory requirements are covered.

Outsourcing accounting also provides an opportunity for enhanced data security. Reputable accounting firms invest in state-of-the-art security systems to protect data from unauthorized access and cyber threats. This level of security may be hard to achieve with an in-house team, particularly for local unions with budget constraints.

There’s also a technology advantage that comes from outsourcing. With an outsourced accounting firm, local unions can benefit from the use of cutting-edge technology. Most accounting firms employ the latest accounting software and tools, facilitating efficient, accurate, and timely financial reporting.

In addition, while in-house accountants can resign, fall ill, or go on vacation, leaving the union with a void to fill, accounting firms usually have staff on hand to ensure uninterrupted service.

What does outsourcing accounting entail for a local union? Initially, the union would need to define exactly what it is looking for in an outsourcing arrangement. Armed with this information, it may issue a “request for proposal,” asking potential firms to provide detailed information about their experience, approach to the work, timeline and costs, the team who will support the client, references, and more.

Beyond the proposal, the local union should meet face-to-face with representatives from the contenders to get answers to additional questions, clarify any arrangement, and ensure fit.

The outsourcing firm selected for the engagement then takes over the financial management tasks, which may include bookkeeping, payroll processing, tax preparation, financial reporting, internal and external auditing, advisory services and strategy setting, and budget planning and monitoring.

The firm should keep you informed through ongoing communication and may even provide value-added resources and information to support your union’s financial compliance, performance, and success. As your local union’s accounting requirements change, you can adjust your outsourcing arrangement to meet evolving needs.

For over 55 years, RBT CPAs has been providing accounting, advisory, audit, compliance and tax services to organizations and businesses – including local unions – across the Hudson Valley and beyond. If you’re interested in learning more about how your local and RBT CPAs can be Remarkably Better Together, click here to request an introductory meeting.

RBT CPAs never offshores work outside of the U.S., so you always know who is handling your financial information.

The Labor-Management Reporting and Disclosure Act (LMRDA) contains recordkeeping requirements for financial records that clarify or verify reports filed with the Office of Labor-Management Standards (OLMS). A union’s treasurer and president (or other corresponding principal officers) are responsible for ensuring their union meets these recordkeeping requirements.

After a report is filed with the OLMS, records must be maintained for five years. This includes all records used in the normal course of doing business and used to complete, read, and file the report (i.e., electronic documents and recordkeeping software). These records verify OLMS reports are complete and accurate.

Per an OLMS Fact Sheet providing guidance on LMRDA recordkeeping requirements, examples of records that should be retained include, but aren’t limited to:

• Receipts and disbursement journals
• Cancelled checks and check stubs
• Bank statements
• Dues collection receipts
• Employer checkoff statements
• Per capita tax reports
• Vendor invoices
• Payroll records

In addition, unions should retain records that help explain or clarify financial transactions, including:

• Credit card statements and itemized receipts for each credit card charge
• Former members’ ledger cards
• Bank deposit slips
• Bank debit and credit memos
• Vouchers for union expenditures
• Internal union financial reports and statements
• Minutes of all membership and executive board meetings
• Accountants’ working papers used to prepare financial statements and reports filed with OLMS
• Fixed assets inventory

If you are not sure about whether to keep a record, you can contact the nearest OLM field office for advice.

A quick scan of Compliance Audit Program outcomes from audits conducted thus far in 2024 very clearly shows details matter. From failing to record a vending machine’s beverage sales and missing itemized receipts for meal expenses to not having an inventory of property that was discarded and failing to obtain countersignatures on all checks, audits are uncovering numerous issues (although many simply require the issue be fixed going forward).

Unions are subject to other recordkeeping requirements related to financial reports (where records must be retained for seven years), as well as staff, their pay, and benefits. Refer to your union’s policies and handbook for details.

As you work to keep your union in compliance with recordkeeping requirements, you can count on RBT CPAs for all of your accounting, advisory, audit, and tax needs. Learn how we can be Remarkably Better Together by contacting us today.

RBT CPAs never offshores work outside of the U.S., so you always know who is handling your financial information.

NOTE: RBT CPAs is not a law firm and the content in this article should not be construed as legal advice. Should you have questions, it’s in your best interest to contact your legal counsel.

In the interest of transparency and accountability, there are stringent laws governing the use of credit cards and expense accounts for unions. These laws are intended to safeguard the funds of union members and ensure that all expenditures are in line with the interests of the union.

At the federal level, the Labor-Management Reporting and Disclosure Act (LMRDA) sets the foundation for these regulations. It mandates that unions maintain precise records of all income and expenditures, including credit card transactions and expense accounts. Any form of misuse or misappropriation of funds is considered a severe violation of this law and can result in hefty penalties or even imprisonment.

Still, expense accounts and credit cards provide a convenient and efficient method of paying for union activities.

A union expense account is designed to cover costs related to union activities. Permissible expenses include union meeting costs, training events, legal fees, and administrative expenses like office supplies and utilities. Funds can also be used for lobbying and campaigning initiatives that support the interests of the union members. However, there are strict limits on personal expenses. Funds cannot be used for personal trips, non-union-related meals, or personal items. Also, any kind of expenditure that could be seen as a conflict of interest, such as gifts to union officials, are strictly prohibited.

Credit cards, on the other hand, offer a convenient way to pay for union expenses, while offering the added benefit of providing detailed statements to track spending. However, they cannot be used for personal purposes or non-union expenses. It’s vital that cardholders adhere to guidelines set by the union to ensure financial transparency and responsible spending.

Compliance in managing these financial tools helps ensure a union’s financial stability by preventing unnecessary or excessive spending. It safeguards a union from potential legal implications related to misuse or fraudulent activity. It maintains trust among union members, as they can see their dues being used responsibly and transparently.

To promote compliance and reduce risks, union leaders should implement stringent policies and procedures around the use of expense accounts and credit cards by:

1. Establishing Clear Policies: Develop comprehensive guidelines that outline what expenses are permissible, the approval process for expenses, and the consequences of misuse.
2. Conducting Regular Audits: Regularly review and audit expense account and credit card statements to identify any irregularities.
3. Training: Provide training to all union members who have access to these financial tools. They should understand the policies and procedures, and the importance of compliance.
4. Limiting Access: Restrict the number of people who have access to union credit cards and expense accounts to minimize the risk of misuse.
5. Promoting Transparency: Regularly share financial reports with union members to promote transparency and accountability.

If you need any assistance setting up financial controls for credit card and expense account use and approvals or conducting an internal audit, as well as any accounting, advisory, audit or tax support, you can count on RBT CPAs professionals. Contact us to learn how we can be Remarkably Better Together.

RBT CPAs is proud to say 100% of its work is prepared in America. Our company does not offshore work, so you always know who is handling your confidential financial data.

Over the last few decades (and the last few years, in particular), the pace of change in the workplace has accelerated and, in many ways, it feels like we are in a constant state of transition – the pause button has been deleted. From new digital technologies and five generations of diverse workers with different priorities to remote work, the gig economy, and a renewed focus on middle-class America, there’s a lot in motion and amidst it all is a revival in the value and role of unions.

2023 was a banner year for unions, which showed that while so much about work and life is changing quickly, the need to protect workers’ financial interests, health, and safety remains. After enjoying decades of being in the power seat, employers found the tides had changed. The labor shortage, low unemployment, and the Great Resignation following the COVID outbreak empowered employees – and unions – to step back in the spotlight and reap powerful results for nurses, autoworkers, teachers, casino drivers, package delivery drivers, writers, and actors, and more. The concept of unionizing also piqued the interest of employees in a number of previously non-union environments (i.e., Amazon, Trader Joe’s, and Starbucks, as well as tech companies).

A report issued by the U.S. Treasury Department last August states: “Over the last half-century, middle-class households have experienced stagnating wages, rising income volatility, and reduced intergenerational mobility, even as the economy as a whole has prospered. Unions can improve the well-being of middle-class workers in ways that directly combat these negative trends. Pro-union policy can make a real difference to middle-class households by raising their incomes, improving their work environments, and boosting their job satisfaction. In doing so, unions can help to make the economy more equitable and robust.” (Feiveson, Laura. Labor Unions and the U.S. Economy. August 28, 2023.)

The report goes on to note that as union membership decreased over the last century, income disparity increased. Since 1970, markers of middle-class stability have decreased, with volatile income, fewer vacations, and middle-class America being less prepared for retirement.

The report concludes: “Increased unionization has the potential to contribute to the reversal of the stark increase in inequality seen over the last half-century. In turn, increased financial stability to those in the middle or bottom of the income distribution could alleviate borrowing constraints, allowing workers to start businesses, build human capital, and exploit investment opportunities. Reducing inequality can also promote economic resilience by reducing the financial fragility of the bottom 95 percent of the income distribution, making these Americans less sensitive to negative income shocks and thus lessening economic volatility. In short, unions can promote economy-wide growth and resilience.”

The 2023 Annual Report of the Office of Labor-Management Standards issued in January of this year echoes many of the same sentiments: “Labor unions advance the economic aspirations of their members, those in the middle class, and those aspiring to reach the middle class. They create equity among diverse communities by closing wage gaps that divide the nation by race, gender, and ethnicity. We have seen labor unions in the forefront of the movement for social justice, promoting benefits for their members – the forty-hour week and overtime pay, retirement security and health insurance, to name just a few – long before these benefits were embodied in national and state law. They continue to lead the way by advancing benefits such as paid family and sick leave for their members, even as those concepts remain elusive as a matter of federal policy. In 2023, the labor movement remains strong, with unions organizing workers at employers and in industries previously not unionized and through historic advancements in wages, benefits and working conditions for workers who have long been represented by unions.”

The Bureau of Labor Statistics joined the discussion in January of this year with a press release on union membership in 2023. Among its findings:

• New York is one of two states with union membership rates over 20% (Hawaii is the other).
• Nearly 29% of the 14.4 million union members live in two states (California at 2.5 million and New York at 1.7 million).
• Union membership in the public sector (32.5%) continues to be more than five times higher than the rate of private-sector workers (6%). However, the number of private sector union workers increased by 191,000 to 7.4 million in 2023.
• Men have a higher union membership rate (10.5%) than women (9.5%).
• Black workers are more likely to be union members than White, Asian, or Hispanic workers.
• Nonunion workers’ median weekly earnings are 86% of union members’ ($1,090 versus $1,263).

A National Labor Relations Board report issued towards the end of 2023 says, “The labor movement is in the midst of a resurgence. Unions have seen near record-high favorability in recent years, with the most recent polls showing that 67% of Americans approve of unions. Recent polling also shows that a majority of workers in the U.S. across all sectors—59%—support unionization in their own workplace. Similarly, Americans’ desire for unions to have more influence in the country has increased from a record-low 25% in 2009 to 43% today. This marks a new high in the desire for union empowerment, exceeding the prior high of 39% in 2017 and 2018.”

As your union focuses on how to maximize these tailwinds to drive progress in 2024, an important consideration should be your accounting systems and financial controls. With the right infrastructure and processes, you’ll be in a stronger position to support growth and your members. To learn more, reach out to your local RBT CPAs professionals. We can handle all of your accounting, tax, audit, and advisory needs. Please don’t hesitate to give us a call and find out how we can be Remarkably Better Together.

RBT CPAs is proud to say 100% of its work is prepared in America. Our company does not offshore work, so you always know who is handling your confidential financial data.