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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