Not-for-Profit Industry Newsletter - Reasonable Compensation / Top Employee Benefit Plan Pitfalls to Avoid
3/25/2010
IRS Examining “Reasonable Compensation” Issues More Closely at NFPs
If you’re a not-for-profit (NFP) organization, the IRS considers things such as bonuses, deferred compensation, medical insurance, and automobile allowances to be “reasonable compensation” – that is, a compensation or benefit that would ordinarily be paid for like services by like enterprises under similar circumstances. The advent of the new Form 990 has enabled the IRS to implement an organized approach for capturing the amount of compensation paid, both directly and indirectly, by NFPs to their executive and staffs, enabling the IRS to quickly identify those NFPs who do not comply with the established reasonable compensation requirements.
Employee Benefit Plan Administrators: Top Pitfalls to Avoid This Year
Recent investment scandals, the sharp decline of the market, corporate consolidations, and employee layoffs have led to a more focused look at the fiduciary responsibilities of employee benefit plan administrators and whether or not they are being carried out in accordance with the Employee Retirement Income Security Act of 1974 (ERISA).
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