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Form T-1: Is My Union Required to File?

Part 1 of a 5-Part Series on the New DOL Form T-1

On March 6, 2020, the DOL issued a final Form T-1 rule. Under the rule, labor organizations with total annual receipts of $250,000 or more are required to file Form T–1, under certain circumstances, for each trust in which the labor organization is interested. Use the flowchart below to assist in determining whether your labor organization is required to file a Form T-1 for a trust:

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What happens if a Form T-1 is required for the trust, but your organization is not the only labor organization subject to the filing requirement for that trust? The good news is that the DOL allows for this: it is not necessary for each organization to file a Form T-1 for the trust independently. The instructions describe the course of action for situations where the parent labor organization also meets the financial or managerial domination test:

Additionally, there are also instructions for “multi-union” trusts (where multiple labor organizations all meet the financial or managerial domination test for the same trust):

Apprentice or training funds, multi-union building trusts, training centers, and fraternal benefit societies are a few examples of trusts for which labor organizations may be required to file a Form T-1. In Part 2 of this 5-Part series, you can obtain information and resources on when to file and for which year.

Needless to say, the processes and systems upon which your organization relies are critical to your ability to provide the timely and accurate information upon which these and many more questions are answered. At Withum, we have worked with our clients for decades to ensure they are on the leading edge where business management and compliance activities are concerned. As a NetSuite partner, we assist our clients in converting data and information into strategically aligned business decisions.

Contact us for a free 30-minute conversation and/or request to see software demonstration in order to allow us to share our insights and answer your questions.

Author: Ashleigh Hall, CPA | ahall@withum.com

Labor Organization Practice Group

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