Here is a scenario: During a recent strike at the Ultima Hotel, union members were paid strike benefits by their union. Don Volmer, a union representative, participates in negotiations with the hotel. Are the payments Volmer receives for his services as a union negotiator subject to FICA taxes?
Let’s take that scenario a step further: Are the union dues that union members pay subject to FICA taxes?
While I’m thinking about unions and the debate surrounding unions that has recently taken place in our state (and is still continuing), I would like to encourage you to stay tuned to the political scene in our state and nation. Often our payroll world is changed based on influences in our political world. Can you think of any ‘hot’ political issues that have or will have an impact on our payroll world?
Expert Answer
What is FICA taxes:
There are certain taxes on income that everyone has to pay, and FICA taxes are at the top of the list. Employers must withhold these taxes from employee paychecks and pay them to the Internal Revenue Service (IRS)
Ans (a)- No.the payments Volmer receives for his services as a union negotiator are not subject to FICA taxes. Since it is not paid by employer.
Ans (b)- No. Union dues are not paid by employers.
Ans- (c)- No we don’t see any political change.