Intermediate Sanctions

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Course Number:18
Category:Executive Compensation
Field of Study:Business Law
Audience:HR Managers, Compensation Managers, Compensation Analysts, HR Generalists
Level of Difficulty:Advanced
Delivery Method:QAS Self Study
Prerequisites: Moderate algebraic training
Advanced Preparation:None
SHRM BASK:As defined by the SHRM Body of Applied Skills and Knowledge (BASK), this self-study course relates to competencies in Business Analysis with functional areas in Total Rewards and U.S. Employment Law and Regulations.
OverviewNonprofit executive compensation is regulated by intermediate sanctions, rules that penalize disqualified persons who receive excess benefit transactions from 501(c)(3) and 501(c)(4) tax exempt organizations. Organization managers involved in such transactions are also subject to penalties. This course will examine how to identify a compensation excess benefit transaction, the organizations and individuals covered, and the penalties involved. An excess benefit transaction, though not spelled out in the intermediate sanctions regulations, may be regarded as unreasonable compensation, which is dealt with in Internal Revenue Code Section 162(a) and covered in this course. (Other transactions to which intermediate sanctions may apply, including property transfers and below-market loans, are not covered in this course.)
Learning Objectives:
  • Identify 501(c)(3) and 501(c)(4) organizations
  • Differentiate between private inurement and private benefit
  • Specify what determines intermediate sanctions disqualified and non-disqualified persons
  • Define who organization managers are under intermediate sanctions
  • Identify the Facts and Circumstances Test and its significance
  • Recognize direct and indirect excess benefit transactions
  • Identify transactions not subject to intermediate sanctions
  • Recognize the elements of executive compensation
  • Identify the criteria to determine reasonable compensation under IRC Section 162(a)
  • Specify safe harbor conditions for reasonable compensation
  • Identify the penalties for excess benefits
Credit & Professional
Continuing
Education Information:

  • SHRM-CP/SHRM-SCP Credit Information:

    ERI Distance Learning Center is recognized by SHRM to offer Professional Development Credits (PDCs) for SHRM-CP® or SHRM-SCP® recertification activities. This program is valid for 2 PDCs for the SHRM-CP® or SHRM-SCP®. For more information about certification or recertification, please visit www.shrmcertification.org.

    SHRM Preferred Provider

  • aPHR/PHR/SPHR/GPHR Credit Information:

    ERI Distance Learning Center is a recognized provider of recertification credits. The HR Certification Institute® (HRCI®) has pre-approved this activity for 2 HR (General) credit hour(s) towards aPHR™, PHR®, SPHR®, and GPHR® recertification.

    HRCI Approved Provider
    HR Certification Institute’s® (www.HRCI.org) official seal confirms that ERI Distance Learning Center meets the criteria for pre-approved recertification credit(s) for any of HRCI’s eight credentials, including SPHR® and PHR®.

  • CCP/CBP/GRP/WLCP Credit Information:

    This online course qualifies for recertification credit for the Certified Compensation Professional (CCP®), Certified Benefits Professional® (CBP), Global Remuneration Professional (GRP®), and Work-Life Certified Professional (WLCP®) designations granted by WorldatWork Society of Certified Professionals. For more information on recertification, visit the Society website at www.worldatworksociety.org.

  • CPE QAS Self Study Credit Information:

    National Registry QAS Self Study - Course approved for 2 credit(s) in these states:

    Alabama, Alaska, Arkansas, California, Colorado, Connecticut, Delaware, District of Columbia, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Puerto Rico, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Virgin Islands, Virginia, Washington, West Virginia, Wyoming

    Course approved for 2 credit(s) in Vermont

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Additional Information:
*The Course Credit List displays credits and credit types offered by location.
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World at Work
CPE Sponsors - Registry
CPE Sponsors - QAS
CAC
CCC

The ERI Distance Learning Center is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: https://www.nasbaregistry.org/

ERI Economic Research Institute is recognized by SHRM to offer Professional Development Credits (PDCs) for the SHRM-CP® or SHRM-SCP®