Agency Fee Calculations

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About Agency Fees

An agency fee is a fee that employees working for an employer that has signed a collective bargaining agreement (CBA) with a labor organization must pay in place of dues when they elect to not be a member of the organization. To calculate the fee, the labor organization looks at each type of expenditure it incurs during the year to determine whether it is chargeable—because it is germane to the union’s business—or non-chargeable.

After the labor organization has completed its agency fee calculation, it will commonly engage a CPA firm to audit the calculation and render an opinion on whether it is fairly presented.

Allocating Chargeable and Non-Chargeable Activity

While the process of computing the agency fee calculation may seem challenging, once a good recordkeeping system is in place, the task becomes routine. Each labor organization must look at its own specific situation and develop its own methodology for allocating expenses.

One-Stop Shop for Labor Unions

We have a large roster of labor union clients for whom we provide various audit and accounting services. Unlike many other accounting firms, we have extensive experience with agency fee calculations, and can thus help by providing that service as well. The result is that we represent a one-stop shop for labor unions, enabling them to work with a single firm they know and trust to handle all their accounting needs.

Our Agency Fee Calculation Textbooks Don't Need Dusting

Members of our team have been conducting agency fee audits since the regulations were put in place in the 80s and 90s. Over the past 30-plus years, our staff has performed hundreds of agency fee audits for a wide range of organizations, including trade unions and professional associations representing governmental and non-governmental employees.

Our experience and expertise mean we won’t be learning on the job if you engage us to do your agency fee calculation. Unlike other accounting firms that perform this work infrequently or never, we have several partners with extensive agency fee experience. We understand, for example, the slight distinctions between the following types of engagements:

  • Beck
  • Hudson
  • Fair share
  • Financial core

We also understand the regulations in each state and have demonstrated that our work holds up under arbitration.

For More Information

If you need help with preparing your agency fee report or any other labor union-related accounting or auditing service, please contact Rich Thiermann, Partner, to request a proposal or ask a question. He can also be reached at 714.257.0100.

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The set of agency fee services we provide includes:

  • Working with an organization to determine the classification of expenses as chargeable or non-chargeable
  • Auditing the agency fee calculation and rendering an opinion on the fee via an agency fee audit report
  • Representing the labor organization and presenting evidence at the arbitration hearing supporting the agency fee calculation
  • Setting up a recordkeeping system
  • Helping clients understand the nuances of the court rulings they have to follow

About Agency Fees

An agency fee is a fee that employees working for an employer that has signed a collective bargaining agreement (CBA) with a labor organization must pay in place of dues when they elect to not be a member of the organization. To calculate the fee, the labor organization looks at each type of expenditure it incurs during the year to determine whether it is chargeable—because it is germane to the union’s business—or non-chargeable.

After the labor organization has completed its agency fee calculation, it will commonly engage a CPA firm to audit the calculation and render an opinion on whether it is fairly presented.

Allocating Chargeable and Non-Chargeable Activity

While the process of computing the agency fee calculation may seem challenging, once a good recordkeeping system is in place, the task becomes routine. Each labor organization must look at its own specific situation and develop its own methodology for allocating expenses.


The set of agency fee services we provide includes:

  • Working with an organization to determine the classification of expenses as chargeable or non-chargeable
  • Auditing the agency fee calculation and rendering an opinion on the fee via an agency fee audit report
  • Representing the labor organization and presenting evidence at the arbitration hearing supporting the agency fee calculation
  • Setting up a recordkeeping system
  • Helping clients understand the nuances of the court rulings they have to follow

One-Stop Shop for Labor Unions

We have a large roster of labor union clients for whom we provide various audit and accounting services. Unlike many other accounting firms, we have extensive experience with agency fee calculations, and can thus help by providing that service as well. The result is that we represent a one-stop shop for labor unions, enabling them to work with a single firm they know and trust to handle all their accounting needs.

Our Agency Fee Calculation Textbooks Don't Need Dusting

Members of our team have been conducting agency fee audits since the regulations were put in place in the 80s and 90s. Over the past 30-plus years, our staff has performed hundreds of agency fee audits for a wide range of organizations, including trade unions and professional associations representing governmental and non-governmental employees.

Our experience and expertise mean we won’t be learning on the job if you engage us to do your agency fee calculation. Unlike other accounting firms that perform this work infrequently or never, we have several partners with extensive agency fee experience. We understand, for example, the slight distinctions between the following types of engagements:

  • Beck
  • Hudson
  • Fair share
  • Financial core

We also understand the regulations in each state and have demonstrated that our work holds up under arbitration.

For More Information

If you need help with preparing your agency fee report or any other labor union-related accounting or auditing service, please contact Rich Thiermann, Partner, to request a proposal or ask a question. He can also be reached at 714.257.0100.