CARES Act Impact on Nonprofits

Dear clients, better known as friends and colleagues: We know this is a difficult time for so many, personally, as well as for your organizations. Know that we’re concerned and thinking of you! We are keeping track of opportunities for assistance for nonprofits and will keep providing information as it becomes available (and we have the chance to digest it). For today, below is a brief summary of provisions of the federal Coronavirus, Aid, Relief, and Economic Security (CARES) Act that apply to nonprofits. As we learn more details, we will keep updating the Scholz Nonprofit Law blog. The [...]

By |2020-03-29T19:34:29+00:00March 29th, 2020|COVID-19, Employment, Nonprofit, Uncategorized|Comments Off on CARES Act Impact on Nonprofits

Updates to FFCRA, effective April 1

All employers with fewer than 500 employees, including nonprofits, must provide two weeks of paid leave and likely are required to provide up to 12 weeks of paid FMLA under FFCRA. Employers will be paid back by the government through a payroll tax offset or additional refunds. The only exemption for the FMLA paid leave is for employers with 50 than fewer employees for whom this obligation would jeopardize their viability. We have no details on that at this point so all employers should assume they will be required to do this and get reimbursed. Details below. Notice requirements [...]

By |2020-03-29T14:00:42+00:00March 27th, 2020|COVID-19, Employment, Nonprofit|Comments Off on Updates to FFCRA, effective April 1

COVID-19 Response Update

The past two weeks have been….a lot. It has been a shake-up for all of us personally and is certainly impacting the nonprofit community. We want to support our community in these difficult times and will send out periodic updates. As a start: Our team remains available to assist as your organization pivots in the wake of this COVID-19 crisis. While our office is temporarily closed, all members of our team are available to you by email, mobile phone or teleconference. See contact information below. We are monitoring emerging laws affecting the nonprofit community and will share resources that [...]

By |2020-03-29T14:01:44+00:00March 25th, 2020|COVID-19, Employment, Nonprofit|Comments Off on COVID-19 Response Update

New Overtime Rule Salary Limit for Exempt Employees

What it is and what employers need to do now On September 24, 2019, the Department of Labor issued a final rule on overtime pay eligibility increasing the minimum salary threshold to $35,568 annually or $684 weekly. This followed a halted, never-implemented rule announced in 2016 to increase the level to $47,476. The increase is the first since 2004 and will take effect on January 1, 2020. Overview of determining overtime pay exemption. Any work performed by an employee that exceeds 40 hours per week is “overtime.” All employees, including nonprofit employees in almost every case, are eligible [...]

By |2019-10-11T00:54:00+00:00October 11th, 2019|Employment|Comments Off on New Overtime Rule Salary Limit for Exempt Employees

Deadline for Form 990: May 15, 2019

This is your reminder with helpful tips All tax-exempt organizations, including 501(c)(3)s, 501(c)(4)s, and 501(c)(6)s, must file a version of the Form 990 with the IRS.  Many of you on this list will qualify to file the "Form 990-N," which is a simple 5-10 minute process. You should be aware that if you do not file a Form 990 in 2019 and also did not file one in 2017 and 2018, your organization will lose its tax-exempt status and you will have to reapply with another application and filing fee. When is my Form Due? The Forms 990 are due 4 months and 15 days after the [...]

By |2019-04-29T14:53:28+00:00April 6th, 2019|Nonprofit, Taxes|Comments Off on Deadline for Form 990: May 15, 2019

How to Conduct Meaningful Performance Reviews

An indispensable element to a strong & stable work force Performance reviews are the employment equivalent of annual physical exams. Many dread them. While some schedule one each year, others avoid them until and unless problems arise that cannot go ignored. When used properly, performance reviews are excellent investments in staff and an organization. From a legal perspective, you are in a much stronger place to make decisions about promotion, compensation, and continuation of employment when you have provided and received input throughout the employment period. Performance reviews should be an ongoing process. Feedback—positive and negative—should be a continuous, [...]

By |2019-04-25T17:53:14+00:00February 19th, 2019|Employment|Comments Off on How to Conduct Meaningful Performance Reviews

1099 Reminder

Deadline for Filing Form 1099 is January 31. A reminder of reporting obligations of nonprofits Dear Scholz Nonprofit Law clients, current and past, and friends in the community: Thank you for the opportunity to work with you. We greatly appreciate the work you do in the community and the trust you place in us to assist you. We look forward to being able to serve you in 2019. All nonprofits have an obligation to submit various reports to the IRS and to the state each year. To the best of our knowledge, the filing deadlines are not changing, despite the government [...]

By |2019-04-25T18:23:02+00:00January 15th, 2019|Nonprofit, Taxes|Comments Off on 1099 Reminder

Alternatives to Arbitration Clauses in the Wake of Epic v. Lewis

There was a huge employment news day this week. You may say it was Epic. The Supreme Court issued its decision on Epic Systems Corp. v. Lewis allowing for employers to hold employees to binding individual arbitration agreements even in class action situations. There are many excellent articles that explain the importance of this decision such as these in the New York Law Journal and the Washington Post. What does this mean to the small employer? In short, this ruling favors large employers and disadvantages the employees that work for them. Generally, we at Scholz Nonprofit Law find that [...]

By |2019-04-25T00:09:43+00:00May 24th, 2018|Employment|Comments Off on Alternatives to Arbitration Clauses in the Wake of Epic v. Lewis

Summer Hires

Summer Help: Temporary Employee, Independent Contractor, or Volunteer? Despite the incredible blast of winter we are experiencing this April, summer is coming. [Just an expression of faith!] With summer comes summer help. Whether it's a stand-alone project or coverage for vacationing staff, it's a rite of passage for many--we were once the young, bright intern and now take the role of the wise, experienced employer. While this type of relationship can be a win-win for your organization and a student looking for a real-world experience, bringing on summer help can be a risk to your organization if classification of [...]

By |2019-04-25T18:42:58+00:00April 19th, 2018|Employment|Comments Off on Summer Hires

Repeal of the Johnson Amendment

I frequently like to remind our 501(c)(3) clients about the importance of advocating on their issues through lobbying and the legitimacy of their role in doing so. But when we encourage lobbying, we point out the distinction between lobbying on issues and the prohibition on political activity. The rule against political activity has been known as the Johnson Amendment because it was added to the tax code under his administration. As you likely know, President Trump has proposed to eliminate that distinction and allow all 501(c)(3)s to engage in electoral politics - - i.e., support or oppose a candidate [...]

By |2019-04-25T00:08:53+00:00April 3rd, 2017|501(c)(3), Nonprofit|Comments Off on Repeal of the Johnson Amendment