Session 2 of Borenstein's Form 990 Foundational Series: Identifying the "right" people who are to be disclosed as holding status as a Trustee/Director, Officer, or Key Employee (these comprising the key pool of "managers" requiring 990 disclosure), a/k/a "TDOKEs," is essential to appropriate Form 990 reporting. Part VII-A is the very first leg in the 990's three-legged stool of primary non-financial statement disclosures. This webinar's materials and the author/instructor's practical perspective will readily guide preparers through the minefield of understanding of who qualifies as a "current" TDOKE (or, alternatively, as a "High 5") as well as when "former" status applies. Clear examples illustrate compensation testing for KEs, High 5s, and formers, with emphasis on the challenges fiscal year organizations face in vetting these individuals given the required “dial back to the calendar year†required in applying KE and High 5 status and compensation thresholds. NOTE: For those looking for a deeper dive into this arena's reporting, the author/instructor does have a Master Class, "Complex Manager Comp Scenarios: Core Form VII-A & Schedule J," but it is on hiatus in the 2023-2024 CPE year. This event may be a rebroadcast of a live event and the instructor will be available to answer your questions during the event.
Learning Objectives
After attending this presentation you will be able to...
- Readily identify the three classes of legally or quasi-legally in-charge managers who are required to be disclosed on the filing for the tax year being reported upon
- Recognize the "reportable compensation" thresholds by which employees fall into consideration as either Key Employees or High 5s (as well as "former" TDOKEs)
- Distinguish the mandatory three versus all the other nontaxable remunerative benefits that are reported as "other compensation" paid or incurred to current and former TDOKEs and High 5s
- Apply the $10,000 'per type' reporting exception for certain items of “other compensation†and understand that this exception does not apply when reporting on Schedule J
Major Topics
The major topics that will be covered in this class include:
- Definitions behind the three classes of legally or quasi-legally in-charge managers who are required to be disclosed as current managers relative to each Form 990's tax year
- Identifying what makes someone a "High 5"
- Drilling into the reportable compensation thresholds by which employees fall into consideration as either "current" Key Employees or High 5s, as well as the relevant compensation thresholds for status as a "former" TDOKE
- Explanation of the two “buckets†of disclosable compensation – reportable and other – that are required to be reported as having been provided to all current and former managers (and High 5s) disclosed on Part VII-A
- The two "$10,000" exceptions on Part VII-A that void the need to disclose a related organizations' reporting (based on amounts) of "reportable compensation"; and excepting certain types of “other compensation"
