Calculating Contributions
Frequently Asked Questions
Feel free to contact Employer Labor Services if you have a question not listed below or want a more thorough answer. We’re here to help.
- "How much should dues be?"
Dues are a percentage of the wage rate. Union dues are deducted from carpenter’s pay, net after taxes. Carpenter foremen, general foremen, or superintendents are charged using the journeyman carpenter taxable hourly wage rate. Union dues deductions are calculated by multiplying the applicable dues rate (%) times the taxable hourly wage rate ($) to determine the dues cents per hour for each carpenter (rounded to the nearest cent). Multiply the dues cents per hour times the number of reportable hours to determine the proper union dues deduction. See Schedule A of your Collective Bargaining Agreement for the dues rate per classification. If you have any questions about what dues rate should apply to your employee(s), contact the Western States Regional Council of Carpenters at (213) 385-1457 or email contracts@wscarpenters.org. - "What is the difference between 401(k) and 401(a)?"
A 401(k) plan is a qualified deferred compensation plan in which an employee can elect to have the employer contribute a portion of his or her cash wages to the plan on a pretax basis. Generally, these deferred wages (commonly referred to as elective contributions) are not subject to income tax withholding at the time of deferral, and they are not reflected on Form 1040, since they were not included in the taxable wages on Form W-2. However, they are included as wages subject to withholding for social security and Medicare taxes. In addition, employers must report the elective contributions as wages subject to federal unemployment taxes.
Before it was phased out, the 401(a) contribution was a pre-tax deduction—that is, deducted from the wage rate before gross pay and taxes were calculated. The 401(a) was not subject to FICA, FUTA or Federal income tax withholding until time of retirement.
Employer Checklist
Do you understand our expectations for employers? The links on the left can direct you to the details, but our requirements boil down to 4 simple things:
1. Fill out the form.
2. Write the check.
3. Deposit funds by due date.
4. Keep good records.
We know it can be frustrating when you don’t have the right information. Be sure to contact us with your questions and suggestions.