Question

To report the total union dues paid by a member, at the end of the calendar year the union can:

A) Include it in employee wages
B) Deduct it from employee wages
C) Submit a separate report
D) Ignore it for reporting

Answer 1

To report total union dues paid, the union should issue a separate report at the end of the year, as union dues are distinct from payroll deductions like taxes.

Step-by-step explanation:

To report the total union dues paid by a member at the end of the calendar year, the union should submit a separate report. Union dues are not included in the employee's wages nor deducted from them for reporting purposes. Instead, they are reported separately, often on forms that detail not just dues but other union-related financial activities.

This is consistent with the requirements imposed on employers and unions by different taxing jurisdictions, which typically involve quarterly and annual reporting of various payroll-related items. Deductions from an employee's wages typically include taxes such as income tax, social security contributions, and other insurances.

These deductions are distinctly different from union dues, which are payments made by employees for membership in a labor union and are not required to be withheld or paid by the employer.