accounting - activities that provide information, usually quantitative and often express in monetary units, for decision making, planning, controlling resources and operations, evaluating performance, and financial reporting to regulatory authorities and the membership. It is a system of recording and conveying information about an organization in financial terms.
accounting categories - the classifying of types of expenditures or receipts for reporting purposes.
accrual-basis accounting - a method of accounting in which revenue is recorded when it is earned. Expenses are recorded when they are incurred. Other changes in the condition of the organization are recognized as they occur, without regard to the timing of the related cash receipts and expenditures.
Automated Clearing House (ACH) - the ACH acts as a central facility for processing electronic payments and receipts. Given the national scope and function of the ACH system, your members’ dues payments can be debited from virtually any account at any bank, savings and loan, credit union or other participating financial institution, regardless of geographic location in the United States.
active status - the current state of a member’s ledger card, which classifies this member as being in good standing.
adjustment - entries made at the end of an accounting period to record previously unrecognized changes in assets, liabilities, revenue, and expenses.
adopted procedures - set of policy guidelines (directions) that govern actions taken by the organization that have been previously accepted and approved by the membership.
affiliates - members of a group of two or more organization related to one another through some form of control, usually a common constitutions and/or by-laws.
affiliation fees - cost of membership in an organization usually expressed on a per person basis.
AFL-CIO - American Federation of Labor - Congress of Industrial Organizations - AFL-CIO home page
agency fees - also known as "fair share fees" are collected from non-members for benefits they derive from the union's work in bargaining and enforcing a labor contract. Only a few states allow this. It is also a sum equivalent to the dues a member pays.
agency fee payers - a worker who is covered by a union security clause, which requires them to pay agency fees as a condition of employment. All newly hired workers who are covered by a union security clause have this status, which is in effect until and unless the worker voluntarily signs a membership card.
allocation - the systematic distribution or assignment of a total amount among several years, accounts, products, departments, or other elements.
amending the budget - a comparative financial statement that shows the budgeted amount, the amount received or spent year to date, and the remaining budget balance. Then subjected to the body that initially approved adoption or to the authority to make changes as needed.
annual budget - an itemized schedule, usually prepared by the treasurer or budget committee. It is a listing of the estimated receipts and expenditures covering a fiscal year. This Planned Budget is prepared in advance as a guide or control as a financial management tool.
annual report - a two part financial report including a statement of assets and liabilities referred to as balance sheet. The second portion has an accompanying statement of income and expenses prepared as of the conclusion of the fiscal year of that organization.
area representative - national office employee assigned to a specific geographical location.
asset - an item of value owned by the union. An asset may be in the form of cash, securities, equipment, or real estate, etc.
audit - an inspection of the accounting procedures and records by a trained accountant. It is the systematic examination of financial books and records involving analyses, tests, and confirmations to determine their accuracy, completeness, and compliance with established standards.
authorization - an established process in which purchases and/or other disbursements are approved by union officers or members.
authorization card - a three-part document that enables a bank or lending institution to automatically deduct a prescribed amount from a member’s account.
authorized commercial bank - the name given to a class of banks designed primarily to finance or lend short-term funds. The term "Full Service Banking" is a more descriptive term.
balance sheet - an itemized statement showing the nature and amount of assets, liabilities, and net assets. It is an instantaneous cross section of the organizations’ solvency.
bank balance - the amount of money in a bank account on a particular date as recorded by a financial institution on a bank statement.
bank reconciliation - the corroboration and authentication of an adjusted closing balance for a financial institution’s records of the account balances as of a specific date. Then the analysis of those items that are causing the difference between the depositor's records and the balance reported on the bank statement.
bank statement - a statement sent by a bank to a checking account customer, such as a union, showing deposits, checks cleared, service charges, interest earned, and ending balances for a specified period, usually one month.
body - a group of individuals selected or appointed to represent a larger group when making decisions, or the membership taken collectively.
bond - insurance protecting an organization, such as a union, against financial loss through fraud or dishonesty.
book balance - the amount of money in a bank account on a particular date recorded by the union in its financial records.
book value - the amount shown in the union's financial records for a particular asset, normally the cost of the asset less the accumlated depreciation.
cancelled check - an original check, which has cleared through the bank.
cash - money, negotiable checks, certificates of deposit, and balances in savings and checking accounts.
cash basis accounting - a method of accounting in which changes in the condition of an organization are recognized only in response to cash transactions whether they be payments or receipts.
cash disbursements journal (CDJ) - a special journal used exclusively for recording cash disbursements. The journal is maintained on a monthly basis. It records the date, check number, and the amount of the disbursement. It can then be followed with a series of columns for itemizing still more common disbursement information.
cash receipts journal (CRJ) - a special journal used exclusively for recording cash receipts. It is maintained on a monthly basis. Complete with a series of columns for recording common receipt items and miscellaneous credits as needed.
cash reconciliation - a comparison of the union's account balances with the records of the bank (bank statement), listing differences to bring the balances into agreement.
certificate of deposit - a certificate from a bank stating that a customer, such as a union, has a specific sum on deposit which will earn a specific rate of interest for a specific period of time.
checkoff - the authorized withholding of dues, fees, or other assessments from a union members' wages by an employer for further transmittal to the union.
check stub - the part of a check or receipt retained as a record of payment.
contingency line - this budgeting line item is recognized with a cost value. It is used to cover those unexpected costs, that may occur, but can not be predicted with any reasonable degree of certainty, and may emanate during the current budgeted period.
COPE - acronym for the Committee on Political Education that is the political wing of the organization and is used to further political action and legislative agendas.
credit - an accounting term used to describe an entry which increases an income, liability or net worth account, and decreases an expense or asset account.
credit memo - an internal memorandum used by banks to increase the fund balance in an account containing a brief explanation of why the account was increased. A duplicate copy of the memorandum is forwarded to the customer with the regular bank statement.
CWA - Communications Workers of America - CWA home page
debit - an accounting term used to describe an entry which increases an expense or asset account, or decreases an income, liability or net worth account.
debit memo (DM) - a posting medium used for bank statement reconciliation that secures a transaction that has occurred but has not found its way into the cash disbursments journal (CDJ) because a check has not been written. An internal memorandum used by banks to decrease the fund balance in an account containing a brief explanation of why the account was decreased. A duplicate copy of the memorandum is forwarded to the customer with the regular bank statement.
deficit - an excess of expenses over income during a prescribed period and at a fixed moment in time.
deposit requirements - the Internal Revenue Service requires the employer to deposit federal withholding and FICA taxes when undeposited taxes reach certain prescribed maximums set by the IRS. These deposits are made at authorized commercial banks. Send one check covering both FICA and federal withholding taxes, payable to the bank where you make your deposits. The deposit due dates and deposit requirements are outlined in IRS Circular E.
deposit slip - a bank document prepared by the account holder, such as a union, that reflects the amount deposited into an account.
depreciation - shrinkage in the value of fixed assets, recognized by the periodic allocation of the original cost of the asset in current operations. It is merely a method of systematically allocating the original cost over the asset’s useful life due to deterioration or obsolescence. In other words, it is a systematic process by which the original cost of a long-term asset, such as a building, is reduced and carried on the union's books at a lesser figure.
direct pay - payments of dues or other fees made directly to the union by members in cash or by check (as opposed to payments received indirectly through a checkoff arrangement with the employer).
disbursement - a cash payment or expenditure referring particularly to cash representing expenses rather than for the purchase of additional assets (in other words, money paid by the local union).
disbursement journal - a chronological listing of all union payments made in which the date, check number, amount, payee, and purpose are recorded.
disbursement reconciliation - a comparison of the union's disbursement records with the records of the bank (bank statements), listing differences to bring the balances into agreement.
DOL - Department of Labor under Labor Management Recording and Disclosure Act (LMRDA) for the Office Labor-Management Standards (OLMS). Federal Government agency. (Go to the DOL home page)
dormant file - the member’s dues ledger card is placed in a special index when the member leaves. It is kept as a permanent record. It is important from a historical point of view and may be used to prove, if warranted, union affiliation at some future time.
dues - a periodic payment to a union by members which establishes them as members in good standing. The amount is generally included in the bylaws and constitution and is approved by a secret ballot vote of the membership.
Employer Identification Number (EIN) - a unique nine-digit number issued by the IRS to be used to identify your local on a number of reports required by the federal government.
endorser - one to whom ownership of a negotiable document, such as a check, is transferred by endorsement.
endorsement - a signature appearing on the back of a union check as evidence of the legal transfer of ownership, especially in return for cash or credit indicated on its face.
exempt status - according to the provisions of Section 501( c ) ( 5 ) of the Internal Revenue Code, all CWA and affiliates are free from filing income tax returns to the federal government. The CWA and their affiliates all share the same Group Exemption Number. The number is 1102. This number is used when completing a Form 990 or 990-EZ.
expenditures - something of value spent, or consumed, most commonly a payment of cash.
fair share fees - also known as "agency fees" are collected from non-members for benefits they derive from the union's work in bargaining and enforcing a labor contract. Only a few states allow this.
FEC - Federal Election Committee
Federally qualified PAC - a political action committee that is registered with the Federal Election Commission and is responsible for filing various forms with that agency for its political contributions.
federal income tax withholding - are funds deducted from the paychecks of employees to the extent that those payments constitute wages. Withholdings are based on the number of exemptions and the applicable withholding tables or rates.
federal unemployment taxes - is a tax that applies to every covered employer who, during the past or current year, pays wages of $1,500 or more in any calendar quarter or has one or more employees at any time in each of 20 calendar weeks. Unemployment is a tax paid entirely by the employer rather than withheld from the employees’ wages. Payments are made in the same manner as federal and FICA taxes and are due on the last day of the calendar month following each quarter (Apr. 30, Jul. 31, Oct. 31, and Jan. 31). A deposit is not necessary if the tax due for the quarter plus the tax due but not deposited from previous quarters is $100 or less. See IRS Circular E for rates.
fiduciary duty - the requirement in law that union officers hold and manage union funds only for legitimate union purposes.
financial officer - the union's constitutional office whose responsibilities include the handling of union receipts, disbursements, and assets.
financial records - all records relating to the receipt, management, and disbursement of union funds. These include, but are not limited to, receipts, records, minutes of meetings in which financial decisions are made, bank statements, expense vouchers, cancelled checks, debit memoranda, receipts and disbursements journals, etc.
fiscal year - a term used to indicate the accounting year as distinguished from the calendar year, with which it may or may not coincide. It is inclusive period used by an organization to budget, account for, and report on operations. It could be defined by the constitution. Under CWA, this period is normally considered to be from October 1 through September 30.
fixed assets - those assets acquired for use by the union with no intention of selling them until their usefulness is dimished, such as land, office equipment, furniture, etc.
FNHP - the Federation of Nurses and Health Professionals that is a division within the American Federation of Teachers
Form 940 - Employer’s Annual Federal Unemployment (FUTA) Tax Return - is an annual return due on or before Jan. 31, following the calendar year to which it relates. Basically, filing the Form 940 reconciles federal unemployment tax deposits with total wages subject to tax.
Form 941 - Employer’s Quarterly Federal Tax Return - is used to reconcile tax deposits made throughout the quarter and to pay any undeposited taxes due. By the last day of April, July, October and January you should file Form 941 with the IRS.
Form 1099-MISC - Miscellaneous Income - is a form used to report miscellaneous income to the IRS. It must be used when reporting amounts paid to individuals, other than those for salaries and wages, if those payments exceed $600 for the year. The date for filing this form is the same as those for the IRS W–2, Wage and Tax Statement.
In the past, stipends, which have been paid to officers, were often reported on this form. However, the IRS has been closely examining such payments and has disqualified many of them. The issue is that withholding taxes, including Social Security and Medicare taxes, have not been withheld from those payments. The individual who received the stipend could be assessed self-employment taxes of 15.9%, a costly experience. The rule that should be followed to avoid such penalties is, that if those stipends are meant to reimburse the officers for expenses, then receipts will be required, when presented, to substantiate those expenses. If those stipends are meant to reimburse officers for time spent working for the union, then payments for time or effort are considered salary and should be treated as wages appropriately.
IRS Form 1099-MISC income is also required for payments to individuals if services are rendered. If an attorney is paid more than $600 for legal services and the attorney is an individual practitioner, a partnership or a professional corporation (PC), this form should be provided to both the individual and the IRS. However, if this attorney’s firm is a corporation, providing a Form 1099-MISC, is not required. There is no reason to provide the form in regards to purchases of goods, only services. When rent is paid to a partnership a miscellaneous income form should be issued. If there is any doubt as to whether or not to issue a Form 1099-MISC, the best policy is to issue one.
Form 8871 - Political Organization Notice of Section 527 Status – This form is required to be filed by local and state federation COPE committees that have annual receipts of $25,000 or more and makes exempt-fund expenditures.
Form 8872 - Political Organization Report of Contributions and Expenditures – This form will be completed and filed quarterly as well as before and after an election. COPE committees that have annual receipts of $25,000 or more and make exempt-fund expenditures are required to file this form. Aggregate contributions of $200 or more for each contributor and expenditures of $500 of more must be reported on this form.
fund balance - appears between the bottom of the Statement of Activities or Balance Sheet and is the difference between the Total Assets and Total Liabilities.
general accounts - listings which appear in the general ledger as categories or classifications for reporting purposes.
general fund - are the resources and related accounts and controls that are not accounted for in another, more specialized fund. Most activities are supported by the general fund.
general journal - this is a book of original entries, in which all transactions are entered chronologically, for which no deposits were made nor any checks written. Typically, these entries include transactions that appear on bank statements, such as interest earned or bank charges. The journal is also used for reclassification of entries from one account to another.
gross receipts - the aggregate of all receipts, without making any exclusions or deductions. The total receipts of all income accounts.
group affiliate - if the organization is chartered and identified as part of the CWA. It is covered under CWA’s IRS group exemption from the payment of federal income taxes under the provisions of Section 501( c )( 5 ) of the 1986 Internal Revenue Code.
group exemption number (GEN) - a four-digit IRS number supplied to CWA for all of its affiliates to use, which relieves them of any federal income taxes obligations. The GEN for CWA is 1102.
hard money - is money used for political action, which comes from the voluntary contributions of union members. This money is kept in a segregated fund, which is non-interest bearing. It is used for endorsement of federal candidates exclusively and should be forwarded to the CWA-COPE PCC.
inactive status - a term used to classify those members who are behind in their dues payments but not sufficiently behind to be dropped from membership.
income tax withholding - an amount taken by an employer from an employee’s gross pay. It is then deposited into an account, of the taxing authority, at an authorized depository bank. It only represents a partial prepayment on the employee’s income tax liability. Currently, it is a "pay-as-you-go" method of collecting estimated tax due from employee’s wages.
incorrect address - a term used when mail, addressed to the member at the address on the roster is being returned by the Post Office as "undeliverable." Prompt action to correct the address is essential, as there is a substantial charge for mail that is returned in this manner.
internal controls - methods and policies designed to prevent fraud, minimize errors, promote operating efficiency, and achieve compliance with established policies. Even more narrowly, procedures and policies designed to prevent or uncover errors and fraud.
interest - money earned on union bank accounts or investments, or the charge or cost for using money. Frequently, interest is expressed as a rate per period (usually one year), called the interest rate.
invoice - a detailed list of goods purchased by a union or services rendered to a union with an account of all costs.
IRS - Internal Revenue Service - IRS home page
IRS Circular E - Employer's Tax Guide (Pub 15) - this guide explains your tax responsibilities as an employer. It explains the requirements for withholding, depositing, reporting, and paying employment taxes. It explains the forms you must give your employees, those your employees must give you, and those you must send to the IRS and SSA. This guide also has tax tables you need to figure the taxes to withhold for each employee. (View the IRS Circular E)
Section 527 – This section of the IRS Code of Federal Regulations (26CFR1.527-1-- Sec. 1.527-1) designates union political committees as tax-exempt entities.
job steward - the main link between the members and the union. They should have an accurate record of all union members at the specific work site.
labor management report (LM Report) - most CWA locals are required to file these reports with the Department of Labor (DOL) because their members are not employed in the public sector (employees of municipal, county, and state government). Locals that have members in the private sector and Federal employees are required to file these reports with the DOL. The LM report must be done on the cash basis reporting. It must be filed at least yearly, within ninety days of the closing of the books. Two original signatures are also required.
legal defense grants - that portion of each member’s per capita that has been set-aside in an account by the union. These funds have been temporarily restricted and are now being returned to the local for its use, because it has identified a need. These funds are used to provide benefits, and have established guidelines with proper procedures that guarantee the distribution will be on an equitable basis. It is the use of certain temporarily restricted assets.
liabilities - any obligations by which an organization is bound to pay a sum expressed in dollars, or having to give up some asset having a monetary value. Local unions obligations or debts.
liquid asset - cash, or assets that can be easily converted to cash, such as savings accounts and certificates of deposit.
local account - if the local decides to use a portion of its dues for state and local elections, it must establish a segregated state and local checking account. These contributions should not be kept in an interest-bearing account.
lost time - time spent by members, away from their regular job, on union business.
lost time wages - reimbursement for wages lost while conducting union business.
LMRDA - Labor Management Reporting and Disclosure Act of 1959, as amended is the governing Federal statute, more commonly known as the Landrum-Griffin Act, which provides for the reporting and disclosure of certain financial transactions and the administrative practices of labor organizations and employers. It also prevents abuses in the administration of trusteeships by labor organizations, and for other purposes. It also has several provisions designed to promote the financial integrity of unions, including those pertaining to financial reporting, record keeping, bonding, and loans.
Medicare & Social Security taxes - are a percentage of the base wage of an employee. You must withhold these taxes from all employees’ paychecks until the maximum limit is reached. Social Security taxes are currently 6.2% of the first $76,200 in wages per paid individual for the year. Medicare taxes are currently 1.45% on ALL wages. The percentage of wages withheld and/or the base wage may change from year to year. This information is contained in IRS Circular E.
militancy funds - see alternative Legal Defense Fund.
member in good standing - includes any person who has fulfilled the requirements for membership in such organization who neither has voluntarily withdrawn from membership nor has been expelled from membership after appropriate proceedings consistent with lawful provisions of the constitution and bylaws of such organization. They have signed a membership card. Their status is in effect until the worker resigns. This status is voluntary. Regardless of the contract language, a worker cannot be forced to become a member. This individual is covered by a collective bargaining agreement and still has elected to join the union.
member ledger cards - individual collection records which contain all of the pertinent information concerning a member’s dues, fees, and assessment payments to the union.
net assets - are the amount that would be left over if all of the union’s assets had to be sold to satisfy all of the union’s liabilities. Sometimes called Net Worth or Members’ Equity.
negotiate - to transfer ownership of a financial instrument (like a check) to another (such as a bank) in return for a thing of value (usually cash).
net excess - the difference between total income and total expenditures. It will either be positive expressed as a surplus or negative referred to as a deficit.
non-member - a worker who has chosen not to join the union and whose contract does have a union security clause. This worker is covered by a collective bargaining agreement where the agreement does not have a union security clause and the individual has elected not to join the union, or there is a union security clause in affect but the worker in a "right to work" state and elects not to join the union.
non - sufficient funds (NSF) - a situation where the balance in an account is not sufficient to cover the amount of checks written on the account. Such checks are commonly referred to as "bounced" checks.
not - for - profit organization - an organization that does not seek profit as its primary objective or goal. If it does realize a profit it is usually called something else, such as a surplus.
obligations - a general term for all classes of indebtedness, the fundamental idea is since the debtor is bound to pay the creditor, therefore, has some legal power to compel this payment.
OLMS - is the Office of Labor-Management Standards of the U.S. Department of Labor's Employment Standards Administration is the Federal agency responsible for administering and enforcing most provisions of the Labor-Management Reporting and Disclosure Act of 1959, as amended (LMRDA).
organizing grants - similar to Legal Defense Grants, these funds are returned to the local for a specific reason and are to be used for only that purpose.
outstanding checks - check written by the union, which have not yet been deducted from the union’s checking account balance by the bank.
outstanding deposit - deposits that have been recorded by a union but have not yet been received (and recorded) by the bank. Also called "deposits in transit."
payee - a person to whom money is paid.
payroll journal - a record of payroll details including the employee’s name, hours worked, (for hourly employees), gross pay, deductions, and net pay. Totals for a payroll period are posted to individual accounts, such as Salaries Expense, Federal Income Tax withheld, and Cash. It could be maintained separately from the cash disbursements journal.
per - capita tax - that portion of a member’s dues that is turned over to the National Union by the local on behalf of their membership. A per member charge that unions must remit periodically.
Political Action Committee (PAC) - political action committees are the vehicle many organizations use to participate in the political process at the local, state and federal level.
pre-authorized check plan (PACP) - to establish a plan the specifications of the layout of bank checks are needed. Print pre-authorized checks and have the member sign two-authorization cards. The organization then deposits one check per member per month into their account.
receipt - a document, which the union provides to confirm that money has been collected, or which a vendor provides to confirm that goods or services have been provided to the union.
receipts - can refer to documents cites above or money received by a union
receipts journal - a chronological listing of union receipts including the date, amount, source, and purpose of each receipt.
receipts reconciliation - a comparison of the union’s receipt records with the records of the bank (bank statement), listing differences to bring the balance into agreement.
reconcile - a method of calculating the correct amount of cash in a bank account by taking the opening balance of the account, adding any receipts, deducting any disbursements (not including outstanding checks), and comparing the result with the bank statement ending balance.
revenue - resources that are received by an organization in the course of normal business in the form of cash and notes or accounts receivable. Revenue would not be resources that are received from sources other than in normal operations such as form the sale of equipment and fixtures (fixed assets), or from loans.
secret ballot - is the expression by ballot, voting machine, or otherwise, but in no event by proxy, of choice with respect to any election or vote taken upon any matter, which is cast in such a matter that the person expressing such choice cannot be identified with the choice expressed
section 501( c ) ( 5 ) - under this section of the 1986 Internal Revenue Code, the CWA and its affiliates are defined as exempt labor organizations whose general nature of activities are educational or instructive, with the purpose of improving conditions of work, and improving products and efficiency. These organizations are required to file an annual return using either IRS Form 990 or the 990-EZ Short Form.
segregated account - since COPE is an entity separate from the union, COPE funds are not treated like union funds especially if these funds come from voluntary contributions. The IRS considers unions nonprofit organization but the funds used for political contributions are not exempted from taxes therefore this money has to held in a separate non-interest bearing account. This is the account that the local also has to set-up when it decides to use a portion of its dues for state and local elections. Exchanges between general and voluntary accounts are never permitted.
shop steward - the main link between the members and the union. They should have an accurate record of all union members at the entire work location.
signatory - the individual authorized by the union to sign checks
signatory cards - cards signed at the bank, for a specific account, with the signatures of those authorized to make transactions on the account.
soft money - union treasury funds can be used to raise money for COPE, to communicate political endorsements and other information to members, and for direct contributions to candidates for local and state offices if not prohibited by state law.
state income tax withheld - most states impose income taxes and withholding requirements similar to those of the federal government. If you are unfamiliar with the requirements of your state, contact the Department of Revenue or the Department of Taxation in your state.
statement of income and expenditures - summarizes the financial activity that has occurred during the period reported and is taken directly from the cash receipts and disbursements journals. The report is prepared at regular intervals to provide the leadership with information on which financial decisions can be based. The report should also show the budgeted amount year to date.
state unemployment tax - your local may be subject to this tax and payments required for your state, to determine whether or not your local is, contact the Department of Employment Security in your state.
stipend - is an amount paid to officers that should be reported, on IRS Form 1099–MISC, miscellaneous income, to the IRS. However, the IRS has lately been closely examining such payments and has been disqualifying many of them. The issue is that taxes, including Social Security and Medicare taxes, are not being withheld from those amounts. The individual who received this amount could be assessed self-employment taxes of 15.9%, a costly experience. The rule that should be followed to avoid such penalties is that if these payments are meant to reimburse the officers for expenses then, receipts are required to be presented to substantiate these expenses. If these payments are meant for the reimbursement of officers for time spent working for the union, payments for time or effort are considered salary and should be treated as wages appropriately. Executive board allowances are considered director's fees and only taxable to the recipient as miscellaneous income.
supporting documentation - checkoff lists, bills, invoices, and other documents maintained by the union to verify the accuracy of the entries made in the union records and deposits and withdrawals made on the union’s accounts.
surplus - may designate an accumulation of receipts over expenses during a specific period. The term is usually avoided because of its ambiguity.
trace - to follow a receipt of a payment (to the union) to an entry in the union’s receipts journal and then from these entries to a related deposit slip and corresponding entry on the union’s bank statement; or to follow a union’s disbursement from authorization of expenditure through the invoice, bill, check stub, or other record into the union’s disbursements journal and then from the journal to the related cancelled check and corresponding entry on the union’s bank statement.
transfer of funds - the movement of cash between accounts held by the union. Such transactions do not represent receipts or disbursements, as the union neither receives nor disburses cash.
transmittal account - a type of account that is used to collect voluntary political contributions and transmit the funds in a short period to the National CWA/COPE. The account is a checking account that must be non-interest bearing.
trial balance - a listing of all accounts, with their balances entered as debits or credits in columns, to determine whether the accounts balance, that is whether, total debits equal total credits. A trail balance is typically prepared at the end of an accounting period just before preparing the adjusting entries and the financial statements.
trustee - refers to those individuals elected or appointed to serve in this capacity, or a similar capacity, whether for a full term or a specific record examination. The primary task is to ensure that all union resources are being used for legitimate union purposes as authorized by the membership in accordance with the constitution and bylaws. In addition, they should ensure that the union is properly submitting per capita taxes to its parent body and is complying with legal requirements for financial reporting, record keeping, bonding, and loans.
trusteeship - any receivership, trusteeship, or other method of supervision or control whereby a labor organization suspends the autonomy otherwise available to a subordinate under its constitution or bylaws.
union treasury funds - one of the two types of funds used for political action. This type is often referred to as "soft money." This type of funds can also be used to raise money for COPE. It may also be used to communicate political endorsements and other information to members. Funds can be contributed directly to candidates for local and state offices. However some states have enacted laws governing political contributions to candidates that limit expenditures and require reporting to the state.
void check - a union check made invalid because of a mistake made in its preparation.
voluntary account - funds that are raise from only members that are to be used for political action must be put in a segregated account. Since COPE is an entity separate from the union, COPE funds are not treated like union funds especially if these funds come from voluntary contributions. The IRS considers unions nonprofit organization but the funds used for political contributions are not exempted from taxes therefore this money has to held in a separate non-interest bearing account. It is extremely important that the local remain in compliance with state laws concerning COPE.
voluntary contributions - also known as "hard money." Voluntary contributions to COPE for the endorsement of federal candidates for the House of Representatives, the Senate, or the President of the United States.
voucher - a form that is prepared to establish controls over and support for expenditures. It is prepared for each transaction as a means of establishing control and ensuring appropriate approval procedures for each disbursement. It can also be a union claim form for reimbursement for expenses, mileage, lost time, etc., which documents the date, amount, and purpose of the payment owed to the preparer of the voucher.
W-2 - Wage and Tax Statement (IRS Form W-2) - each employer must provide each employee with a Form W-2 showing total wages, federal income tax withheld, FICA (Social Security) taxes withheld, state taxes withheld and other pertinent information as required on the form. This form must be provided to the employee on or before Jan. 31, or at the end of employment. On or before Feb. 28, these forms must be mailed to the IRS, along with a Form W-3, Transmittal of Income and Tax Statements.
W-4 - Employee’s Withholding Allowance (IRS Form W-4) - is for employees to report the desired number of withholding exemptions. The amount to withhold from each employee is determined by the number of withholding exemptions claimed on the employee’s W-4. (If an employee claims 10 or more withholding exemptions, a copy of the W-4 must be sent to the IRS.)
withdrawal slip - a bank document prepared by the account holder, which reflects the amount withdrawn from an account.
workers' compensation insurance - most states require Workers’ Compensation Insurance. Usually, Workers’ Compensation Insurance can be obtained through a private insurance carrier or from a state-operated fund. Be sure that the coverage that you purchase meets the minimum requirements for your state.