Course#: 18

Category: Tax Issues and Planning

Field of Study: Business Law

Audience: HR Managers, HR Generalists

Level of Difficulty: Advanced

Delivery Method: Self-Study

Prerequisites: Some college-level courses with moderate algebraic training

Advanced Preparation: None

Overview:
This course provides an overview of how intermediate sanctions (Internal Revenue Code § 4958) impact executive compensation arrangements. Intermediate sanctions are aimed at curbing abuse that occurs in 501(c)(3) and 501(c)(4) tax-exempt organizations relating to overcompensation of individuals in control at these firms. This course will examine the organizations covered, the individuals involved, and the penalties associated with excess benefit. In addition, we will look at how to avoid intermediate sanctions relating to issues of reasonable compensation. (Other transactions to which intermediate sanctions may apply, including property transfers and below-market loans, are not covered in this course.)

Learning Objectives:

• Understand what an excess benefit is and to whom it may apply
  
• Collect and analyze tax-exempt organizations' executive pay data for determining the reasonableness of compensation for disqualified persons
  
• Recognize the penalties for excess benefits and be able to position the organization in order to minimize the effects of an excess-benefit claim
  
• Utilize ERI's Compensation Comparables Assessor™ software to research reasonable executive compensation levels in for-profit and non-profit organizations

Credit and Professional Continuing Education Information:

• Compensation Committee Certification (CCC)
• PHR/GPHR/SPHR (SHRM)
• CPE Registry Self-Study (CPAs)
• Job and Compensation Analyst (JCA)
• CPE QAS Self-Study (CPAs)
• CCP/CBP/GRP (WorldatWork)
• Authors

*The Course Credit Map displays credit types offered by location and corresponding lists of eligible courses.