Introduction

The Basics

Operating the Union

Contract Administration

Organizing

Building Trades and
Other Organizations

Labor Law

Politics and Government

Useful Information

Education

References

Home

Monthly Reports

Income

Compare receipts of dues with a current membership list. Even with an automatic checkoff, mistakes occur. Income should be listed in the period when it is received. Budget estimates are important and should be compared to expenses monthly. Other sources of income, such as interest on savings or investment instruments, member withdrawal or reinstatement fees and rebates from the International should be accounted for separately. Sales of union clothing and other paraphernalia generally are permitted.
The union generally may sublet a part of a rented building and may rent a part of the building they own.

Deposits

Incoming checks should be stamped immediately “For Deposit Only to the Credit of [your Local Union].” Make deposits on a regular basis. The accounts should be reconciled by someone other than the person responsible for deposits or withdrawals. Collection of funds received outside the office should be turned in to the Local daily.

Dues

There are a variety of methods for members to pay dues. In construction locals, it is common for members to visit the hall to do this. In addition to regular dues, some local unions collect a working assessment that is based on a percentage of hours worked. Regardless of the method of dues collection, the local union must pay per capita assessments monthly. It is best to follow specific guidelines from the International regarding per capita payments. There are separate assessments for a number of organizations, including the international union and its state or regional branches, the State AFL-CIO, building trades councils and labor councils in your local’s jurisdiction. The International may collect other per capita assessments, such as insurance payments, on a regular basis.

Check-Off

The contract may required an employer to deduct initiation fees and dues from employee’s paychecks on a monthly basis and remit the amount directly to the union. This check-off must include the individual employee’s names and amounts deducted. Employees must agree in writing to participate in the deduction system. The authorization may be made irrevocable for a period of one year or the duration of the contract, whichever period is shorter. The checkoff authorization also may be self-renewing. The employer must maintain individual deduction authorization cards. Official receipts should be written for all dues payments as shown on the check-off list. Any delinquencies should be noted. Summary dues payment statements should be prepared periodically and mailed to members as a check against their own records. This provides members an opportunity to reconcile any errors as well as an opportunity to prevent suspension.

See also: Union Security Agreements

Donations or Other solicitations

The IRS requires tax-exempt organizations to include in any fund-raising solicitation a statement that gifts and contributions cannot be deducted as charitable contributions for tax purposes. All receipts for dues or other solicitations should state the following:

Dues, fees, assessments, contributions or gifts to (Name of Organization) are not deductible as charitable contributions for federal income tax purposes. Dues paid to (Name of the Organization) may qualify as business expenses and may be deductible in limited circumstances subject to various restrictions imposed by the IRS.

Internal Controls

For locals with more than one employee in the office, it is a good internal control practice to designate one person as a cashier and another as the bookkeeper for the receipts record and the membership ledger. For over-the-counter transactions, the cashier should prepare a simple summary report with recept numbers used that day, the amount collected the amount deposited and the amount still on hand. The report, along with any deposit record, is submitted to the bookkeeper for entry in the daily cash receipts record. For mail transactions, an officer or employee other than the bookkeeper or cashier should open the mail and list items received. Cash and checks and a copy of the list are submitted to the cashier and a second copy of the list is given to bookkeeper. All mail transactions should be included in the cashier’s end of the day report. Collecting dues on the jobsite is a practice that is open to abuse and should be discouraged.

Blank checks should be consecutively numbered and never signed in advance. They should be kept in a safe place. Someone other than the person writing checks should be responsible opening monthly bank statements and reviewing cancelled checks.