Perhaps this is something easy to look up, but I've tried and need a little help. I prepared W-2's for a client and later found out that there had been payment to a union pension plan on behalf of an employee who worked on a union job that was subcontracted by my client. First of all I am ignorant as to whether this is in any way taxable to the employee. Second is does this go on the 941/W-2 anywhere?
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JG -
Union Pension Contribution
Check the box that asks for whether the employee is covered by an employer pension.Uncle Sam, CPA, EA. ARA, NTPI Fellow -
Union Contribution
As I understand this, the client had an employee that did a subcontract job that was part of a union. The client paid the employee the same as everyone else but later the union contacted the employer and the employer had to contribute a certain amount to the union pension fund on behalf of this employee.
I can't see how this would be taxable compensation to the employee so the W-2 was probably correct as prepared.
Uncle Sam's comment that the Pension box be checked would seem proper.
The employer would deduct this pension contribution as a fringe benefit.
If there is no other pension in the Company, I may list the contribution as a line item in other deductions so the Company does not receive inquiries about having a pension plan and not filing 5500 forms. Basically, watch which line your client puts this on.Comment
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Thanks so much. This was my first sick-to-my-stomach this year - maybe the last? I hope so. I so appreciate your help.JGComment
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Aside: It's not at all a dumb question. But "Reporting union pension on W-2/941/1099" would have been a better thread title.Comment
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