Union Benefits & Payroll -
What benefits should be included in taxable wages

1. EXCEPT Dues, Vacation & Holiday, and 401(k), all contributions due to the Trust Funds are non-wages. These non-wage contributions can be disregarded for payroll purposes.
    

2. DUES - Dues should be withheld from Net Pay and paid to the Trust Fund.
    

3. VACATION & HOLIDAY - V&H should be added to Gross Wages, taxed, then withheld from Net Pay and paid to the Trust Fund.
    

4. 401(k) - 401(k) deferrals are a BEFORE TAX deduction from Gross Wages.
    

5. Example:
   Start with:       Wages          40 hours @ 26.83       $1,073.20
   Add:               V&H             40 hours @ 2.98         $   119.20
   Subtract:         401(k)          40 hours @ 2.00        -$     80.00
   Result in Taxable Wages:                                     $1,112.40
   
   Subtract:         Taxes           (must calculate)      -$   200.00
   Subtract:         V&H             40 hours @ 2.98       -$   119.20
   Subtract:         Dues            40 hours @ 0.54       -$     21.60
   Result is Net Pay:                                                $  771.60
   
   (The above is an EXAMPLE ONLY. The rates for your employees may differ. If your employee worked overtime, then the overtime generally applies to both wages and V&H)
    

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