Reportable compensation. Reportable compensation consists of:

• For officers and other employees --- amounts required to be reported in Box 5 of Form W-2.

• For directors and individual trustees --- amounts required to be reported in Box 7 of Form 1099-MISC (plus Box 5 of Form W-2 if also compensated as an officer or employee).

• For institutional trustees --- fees for services paid pursuant to a contractual agreement or statutory entitlement. While the compensation of institutional trustees must be reported in Form 990, Part VII, it need not be reported in Schedule J.

If the organization did not file a Form 1099-MISC because the amounts paid were below the threshold reporting requirement, then include and report the amount actually paid.

TIP: Corporate officers are considered employees for purposes of Form W-2 reporting, unless they perform no services as officers, or perform only minor services and neither receive nor are entitled to receive, directly or indirectly, any compensation. Corporate directors are considered independent contractors, not employees, and director compensation, if any, generally is required to be reported on Form 1099-MISC. See Regulations section 31.3401(c)-1(f).

For certain kinds of employees, such as certain members of the clergy and religious workers who are not subject to social security and Medicare taxes as employees, Box 5 of Form W-2 may be zero or blank. In such case, the amount required to be reported in Box 1 of Form W-2 must be reported as reportable compensation.

To determine whether an individual received more than $100,000 (or $150,000) in reportable compensation in the aggregate from the organization and related organizations, add the following amounts:

• The amount reported in Box 5 of Form W-2 and/or Box 7 of Form 1099-MISC issued to the individual by the organization.

• Amounts reported in Box 5 of Form W-2 and/or Box 7 of Form 1099-MISC issued to the individual by each related organization that reported $10,000 or more.

To determine whether an individual received solely in his or her capacity as a former trustee or director of the organization more than $10,000 in reportable compensation for the calendar year ending with or within the organization’s tax year, in the aggregate, from the organization and all related organizations (and thus must be reported in Form 990, Part VII and Schedule J, Part II), add the amounts reported in Box 7 of all Forms 1099-MISC and, if relevant, Box 5 of all Forms W-2 issued to the individual by the organization and all related organizations for the calendar year ending with or within the organization’s tax year. Report such amounts only to the extent that such amounts relate to the individual’s past services as a trustee or director of the organization, and do not disregard any payments from a related organization below $10,000 for such purpose.

Other compensation. Other compensation includes compensation other than reportable compensation, including deferred compensation not currently reportable on Form W-2, Box 5 or Form 1099- MISC, Box 7, and certain nontaxable benefits, as discussed in the Schedule J, Part II instructions. See the instructions for other compensation reported in column (F) below, which includes a table to show where and how to report certain types of compensation on Part VII, Section A and Schedule J.

Disregarded entities. Disregarded entities (such as a limited liability company that is wholly owned by the organization and not treated as a separate entity for federal tax purposes) are treated as part of the organization rather than as related organizations for purposes of Form 990, including for Part VII and Schedule J. A person is not considered an officer or director of the organization by virtue of being an officer or director of a disregarded entity, but he or she may qualify as a key employee or highest compensated employee of the organization. An officer, director, or employee of a disregarded entity is a key employee of the organization if he or she meets the $150,000 and Top 20 Tests for the filing organization as a whole and if, with respect to the Responsibility Test, the person has responsibilities, powers or influence over a discrete segment or activity of the disregarded entity that represents at least 10 percent of the activities, assets, income or expenses of the filing organization as a whole, or has or shares authority to control or determine the disregarded entity’s capital expenditures, operating budget, or compensation for employees that constitutes at least 10 percent of the filing organization’s respective items as a whole. If an officer or director of a disregarded entity also serves as an officer, director, trustee, or key employee of the organization, report this individual as an officer, director, trustee, or key employee, as applicable, of the organization, and add the compensation, if any, paid by the disregarded entity to this individual to the compensation, if any, paid directly by the organization to this individual. Report the total aggregate amount in column (D).

Management Companies. Management companies, as independent contractors, are reported in Form 990, Part VII (if at all) only in Section B, Independent Contractors, and are not reported in Schedule J, Part II. If a current officer, director, trustee, or key employee listed in Form 990, Part VII, Section A has a relationship with a management company that provides services to the organization, then the relationship may be reportable in Schedule L, Part IV. The same is true for a former officer, director, trustee, or key employee within the last five years, whether or not listed in Form 990, Part VII, Section A. If a current or former officer, director, trustee, key employee, or highest compensated employee receives compensation from a management company that provides services to the organization and is a related organization, then the individual’s compensation from the management company must be reported in Form 990, Part VII, Section A, columns (E) and (F). Questions pertaining to management companies also appear in Form, 990 Part VI, line 3 and Schedule H, Part IV.