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U.S. Department of LaborU.S. Department of LaborOffice of Labor-Management Standards
(OLMS)
Bookkeeping for the New Labor Organization Annual Report
Form LM-2
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Overview
• Option 1 – Set up chart of accounts using categories that mirror the LM-2 categories
• Option 2 - You may also keep your existing chart of accounts and add the LM-2 categories for bookkeeping classifications
• Option 3 – Book to both the union accounts and LM-2 accounts and use the “LM Contra Account” to offset the double-booking
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Overview
• Each transaction should be assigned to an LM-2 bookkeeping account
• Individual credit card transactions must be entered into the system and assigned to the proper LM-2 bookkeeping categories
• Data from accounting software reports can be exported to a spreadsheet program in order to be imported into the LM-2 software
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Chart of Accounts
This is a sample LM-2 chart of accounts
Account Description Account Type
General Fund Checking Cash
36 Dues/Agency Fees Income
37 Per Capita Tax Recv’d Income
38 Fees, Fines, Assessments Income
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Chart of Accounts
Account Description Account Type
39 Sale of Supplies Income
40 Interest Income
41 Dividends Income
42 Rent Income
43 Sale of Invest./Fix Asset Income
44 Loans Obtained Income
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Chart of Accounts
Account Description Account Type
45 Repayment of Loans Income
46 On Behalf of Affil. Income
47 From Members for Disb. Income
48 Other Receipts Income
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Chart of Accounts
Account Description Account Type
50 Repr. Activities Expense
51 Political Activ/Lobby Expense
52 Contrib, Gifts, Grants Expense
53 General Overhead Expense
54 Union Administration Expense
55 Benefits Expense
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Chart of Accounts
Account Description Account Type
56 Per Capita Tax Expense
57 Strike Benefits Expense
58 Fees, Fines, Assessments Expense
59 Supplies for Resale Expense
60 Purchase of Inv/Fix Asst Expense
61 Loans Made Expense
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Chart of Accounts
Account Description Account Type
62 Repayment of Loans Expense
63 To Aff of Funds Collected Expense
64 On Behalf of Members Expense
65 Direct Taxes Expense
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Chart of Accounts
Account Description Account Type
67a Payroll Withholding Expense
- Off. 1 Federal Withholding Expense
- Off. 1 Medicare Expense
- Off. 1 Social Security Expense
- Off. 1 State Withholding Expense
- Off. 1 Other Withholding Expense
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Chart of Accounts
Account Description Account Type
67a Payroll Withholding Expense
- Emp. 1 Federal Withholding Expense
- Emp. 1 Medicare Expense
- Emp. 1 Social Security Expense
- Emp. 1 State Withholding Expense
- Emp. 1 Other Withholding Expense
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Chart of Accounts
Account Description Account Type
67b Payroll Withholding Disbursed Expense
Schedule 11 Officer 1 Expense
- Schedule 11(D) Salary Expense
- Schedule 11(E) Allow Expense
- Schedule 11(F) Off. Bus. Expense
- Schedule 11(G) Other Expense
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Chart of Accounts
Account Description Account Type
Schedule 11 Officer 2 Expense
- Schedule 11(D) Salary Expense
- Schedule 11(E) Allow Expense
- Schedule 11(F) Off. Bus. Expense
- Schedule 11(G) Other Expense
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Chart of Accounts
Account Description Account Type
Schedule 12 Employee 1 Expense
- Schedule 12(D) Salary Expense
- Schedule 12(E) Allow Expense
- Schedule 12(F) Off. Bus. Expense
- Schedule 12(G) Other Expense
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Chart of Accounts
Account Description Account Type
Schedule 12 Employee 2 Expense
- Schedule 12(D) Salary Expense
- Schedule 12(E) Allow Expense
- Schedule 12(F) Off. Bus. Expense
- Schedule 12(G) Other Expense
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Your Chart of Accounts – Your Chart of Accounts – Options 2 and 3Options 2 and 3
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Keeping your Chart of Accounts
• If you decide to keep your existing chart of accounts, you must add the LM-2 categories identified above.
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Keeping your Chart of Accounts
• List your accounts on the Chart of Accounts and list LM-2 categories in that same number series.
Example: Officer 1 incurs expenses for reimbursed meals and lodging as well as auto expenses for a union car assigned to him/her.
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Keeping your Chart of Accounts
Travel Expense
Auto Expense
Travel Expense
- Schedule 11(F) Off. Bus. – Officer 1 Expense
Union Account Only
Union and LM-2 Accounts
Auto Expense
- Schedule 11(F) Off. Bus. – Officer 1 Expense
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Account Description Account Type
Travel Expense
- Schedule 11(F) Off. Bus. Officer 1 Expense
- Schedule 11(G) Other Officer 1 Expenses
- Schedule 12(F) Off. Bus. Employee 1 Expense
- Schedule 12(G) Other Employee 1 Expense
Keeping your Chart of Accounts
Union and LM-2 Accounts for Travel
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Account Description Account Type
Travel Expense
- 50 Repr. Activities Expenses
- 51 Political Activ/Lobby Expenses
- 52 Contrib, Gifts, Grants Expenses
- 53 General Overhead Expenses
- 54 Union Administration Expenses
Keeping your Chart of Accounts
Union and LM-2 Accounts for Travel
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Keeping your Chart of Accounts
Union and LM-2 Accounts for TravelAn Example – The union credit card is used by Officer 1 to charge expenses including hotel charges ($198 – Hyatt Hotel) and meals ($70 – Outback Steakhouse) related to negotiating a collective bargaining agreement. The $198 – Hyatt Hotel charge included a meal of $30 and an in-room movie charge of $11. The union also charged a conference room for two days of negotiations ($200 – Hyatt Hotel). Roundtrip airfare of $250 was also charged for travel to and from negotiations.
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Account Description Account TypeAmount Booked
Travel Expense
- Schedule 11(F) Off. Bus. Officer 1 Expense $100.00
- Schedule 11(G) Other Officer 1 Expenses $11.00
- 50 Repr. Activities Expenses $250.00
Negotiations Expense
- 50 Repr. Activities Expenses $357.00
Keeping your Chart of Accounts – Option 2
Proper Bookkeeping
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Negative Splits – Union & LM-2 Accounts
LM Contra Account Expense ($718.00)
Account Description Account TypeAmount Booked
Travel Expense $361.00
Schedule 11(F) Off. Bus. Officer 1 Expense $100.00
Schedule 11(G) Other Officer 1 Expenses $11.00
50 Repr. Activities Expenses $250.00
Negotiations Expense $357.00
50 Repr. Activities Expenses $357.00
Keeping your Chart of Accounts – Option 3
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Another Example
Auto $50.00
Schedule 11(F) Off. Bus. Officer 1 $50.00
Travel $200.00
Schedule 11(F) Off. Bus. Officer 1 $200.00
Union Check written to Officer 1 for reimbursed Travel and Auto expense
LM Contra Account ($250.00)
Keeping your Chart of Accounts – Option 3
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