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Nonprofits have a $1M pay problem
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I share the 4-5 most important accounting that actually matter. I scroll so you don’t have to.
So grab your coffee, take a quick break, and lets catch up.
Number of the day, 60
That’s the percentage of Americans who say they’ve had a paranormal experience, including visions of ghosts and, in some cases, demons.
Honestly, seeing a demon would be less disturbing than watching a CEO explain why layoffs are “a culture reset.”
Today’s Ledger:
A nonprofit pay rule is about to get way more expensive.
The IRS is moving Trump Account elections online.
Teen summer jobs are disappearing fast.
WTF of the Day🤯
Nonprofits Have a New $1 Million Pay Problem
Nonprofits just got a new reason to watch big pay packages. Under the One Big Beautiful Bill Act, Section 4960 is expanding so the 21% excise tax can apply to any employee making more than $1 million, not just the five highest-paid executives. Which raises the obvious question, if this is a nonprofit, why are people getting paid more than $1 million?
The answer is that nonprofit does not mean nobody makes serious money. It just means the organization does not pay profits to owners or shareholders. Big hospitals, universities, foundations, and nonprofit systems still compete for executives, and some of those packages get huge. Congress is not banning the pay, but it is making the organization eat an extra tax bill when compensation crosses the line.
And that line is easier to cross than it sounds. It is not just salary. Deferred comp, bonuses, severance, taxable benefits, and payments from related entities can all count. So someone can look under the limit most years, then trigger the tax when a big payout vests or a severance package hits. That turns Section 4960 from a year-end tax issue into a real budgeting problem for finance, HR, and legal before the deal is even signed.
What’s poppin in accounting🍿
IRS Adds Trump Account Elections Online
The IRS just made it easier for families to deal with Trump Accounts. Taxpayers can now log into their IRS Individual Account, see the status of Form 4547, and submit the Trump Account election online instead of messing with paper forms. The IRS says this should make the process faster, more accurate, and easier to track because families can see where their election stands and what they need to do next.
Trump Accounts came out of the One, Big, Beautiful Bill that passed on July 4, 2025. They let parents, guardians, and other authorized people set up a new type of IRA for kids under 18 who have a valid Social Security number. There is also a one-time $1,000 Treasury contribution for eligible children born from Jan. 1, 2025 through Dec. 31, 2028, as long as they are U.S. citizens with a valid Social Security number.
Basically, the government is trying to turn this into an early savings account for college, retirement, and long-term wealth, and now the IRS is moving the paperwork into the same online account taxpayers already use.
Source: IRS.GOV
Weekly Trend Chart 📊
American Teens Aren't Working Summer Jobs Like They Used To
Summer used to be when teenagers got their first real job. Lifeguarding, scooping ice cream, bagging groceries, working at a hotel, whatever paid a little and taught you how to show up on time. Now those jobs are getting harder to find. Teens ages 16 to 19 are expected to add just 790,000 jobs from May through July this year. That would be the lowest summer teen hiring number since the government started tracking it in 1948.
This is not just a “kids don’t want to work” story. Some teens are choosing school, AP classes, college prep, and resume-building over summer jobs. But employers are pulling back too. Hotels, resorts, theme parks, and other leisure businesses announced 70% fewer hiring plans through April than they did last year. Teens are also competing with more older workers in food service, sales, and office jobs.
Meme of the Day😂
The final hour of each day 😂