UAW-FCA-Ford-General Motors Legal Services Plan Questions and Answers Regarding the 1099 Form

The UAW negotiated a new Legal Service Plan Benefit in the last round of negotiations with FCA, Ford and GM. The benefits provided by the Legal Services Plan are fringe benefits that are taxable under the IRS Code. The Plan will be sending out a 1099 form to the over 600,000 UAW members that are eligible to receive the benefit. These members will have to include $17.30 on their Federal income return which will result in a minimal tax of $1.73 to $6.85. Below is a copy of the Q and A insert you will receive along with a 1099 form.

Why am I receiving this 1099?

As you know, the UAW negotiated a legal service benefit in the 2015 contract negotiations with FCA, Ford and General Motors and this benefit is available to certain eligible active workers and retirees and some surviving spouses. The UAW-FCA-Ford-General Motors Legal Services Plan opened on January 25, 2017. The benefits provided by the Legal Services Plan are fringe benefits that are taxable under the Internal Revenue Service Code. Prior to 1992 the money paid by your employer to run the Legal Services Plan was tax exempt to you. That tax exemption expired on June 30, 1992 and now the cost of those services must be taxed to the eligible members.

 How do you determine the amount of income?

The Legal Services Plan follows IRS guidelines for imputed income on taxable fringe benefits. In our case, the costs to provide the legal services benefit to eligible members for the year are totaled and divided by the number of all eligible members. The income must be reported by all who are eligible for the benefit regardless of the use of the benefit.

 How much will the tax on the Legal Services Plan cost me?

It depends on your tax rate but it will be less than the amount listed on the 1099. The amount you will pay in taxes will be based on your tax rate, currently ranging from 10% to 39.6%. Therefore, you will owe between $1.73 to $6.85 in federal taxes. Please understand that you should enter the amount listed on the 1099 ($17.30) on your federal and state tax returns as miscellaneous income. You may wish to discuss this further with your tax preparer.

What legal services are covered by the Plan?

The Legal Services Plan offers a variety of office legal services such as preparation of wills, trusts, powers of attorney, deeds, residential real estate documents, credit reporting problems and uncontested divorce and family matter documents. It also provides advice and assistance in consumer contract matters, birth and marriage certificate matters and other uncontested matters regarding residential real estate. It also can provide a low-cost referral to a private attorney for many other personal legal matters not covered under the office work benefit.

How do I use the Legal Services Plan benefit?

Simply call the Legal Services Plan at 1-800-482-7700. Your eligibility will be verified and the level of benefits explained to you. If you are eligible and the matter is covered for office work or for a low-cost referral, you will be referred to an attorney who can assist you. The Plan is generally open Monday through Friday, 9:00 am to 5:00 pm EST.

 

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1099 form

Profit Sharing Payment and PSP Deferral Information

On February 6, 2018, GM will announce the maximum profit sharing payment amount for eligible members who accrued 1,850 or more compensated hours during 2017.  Per the Plan language, eligible members who accrued less than 1,850 compensated hours will receive a prorated share based on the number of accrued compensated hours.

Active members will receive the profit sharing payment in their February 23, 2018 paycheck.  Eligible retiree (a retiree who worked and had compensated hours in 2017) payments will be paid on March 23, 2018.

 Members do have the opportunity to contribute all or a portion of their payout in one percent increments up to 100 percent, or a flat dollar amount to their Personal Savings Plan (PSP) on a pre-tax basis, subject to tax law limitations.  Deferral contribution elections will be accepted between 8:00 a.m. EST on January 26, 2018 and 4 p.m. EST on February 9, 2018.  Elections can be made online at gmbenefits.com or by calling the GM Benefits & Services Center at 1-800-489-4646.

Please consider the following when deferring all or a portion of the Profit Sharing payout:

  • Members must make a new deferral election during the window period.
  • The payout is subject to FICA tax and Union dues.
  • For active members receiving wages, the Profit Sharing contribution will be the percentage or flat dollar amount elected, provided other wages are enough to satisfy the FICA and Union dues obligations of the combined wages and Profit Sharing payout.
  • For active members not receiving wages, the Profit Sharing contribution will be after FICA taxes and Union dues are deducted from the Profit Sharing payout.
  • Any outstanding payroll or benefit overpayments, special court orders for child support arrearages, tax levies or similar obligations will be deducted from the Profit Sharing payout before any contributions are made to the PSP.

The following are not eligible to defer:

  • Members on a leave of absence or layoff
  • Members who are suspended from participating in the PSP
  • Inactive members, including those who retired in 2017
  • Members receiving payments less than $50

For more details and deferral examples, please refer to the Profit Sharing communication sent to members beginning January 25, 2018 based on their preferred method of communication on file at Fidelity.

PSP sharing info

Unused Vacation & Holiday Deferred Payout

In accordance with Paragraph (193b), General Motors has notified the Union of the following:

Eligible members that have unused vacation or holiday deferred hours from 2017, can expect to receive payment in Roll 4, payment date of January 26, 2018.

When employees view their pay statements for this payout, they may see up to 2-line items:

  1. VACPRO for unused vacation hours and
  2. HOL PRPO for unused holiday deferred hours

A file showing unused hours for each employee will be sent to the Labor Relations department at each plant on the evening of Tuesday, January 23rd, 2018.  Employees who have a concern regarding the eligibility or amount of their payment should contact their Local Union Representative, who can work with the Labor Relations team to respond to the concern.   Questions or concerns regarding the unused hours payout are not handled or answered by the payroll help desk.

In accordance with Paragraph (202g), employees who exceeded their allotment of vacation hours for 2017 will begin to see a $100 recovery from their paystub, starting with the check date Friday February 23, 2018.  Employees who have been identified as being overpaid vacation hours in 2017 will receive an over payment letter within the 30 days following January 26, 2018.

unused vacation

 

Martin Luther King Jr. Day

This Monday, January 15 we celebrate the national holiday honoring Dr. Martin Luther King Jr. The UAW had a strong bond with the great civil rights leader and this forged the long-standing connection between labor and civil rights. In 1959 Walter Reuther met Martin Luther King and the two became fast friends through their common ground of fighting to secure rights for all. Martin Luther King believed labor would be an integral part to the civil rights movement. Reuther and the UAW agreed and were quick to join the fight. Reuther joined Dr. King on many of his marches and gave an address to the crowd to open the historic “march to Selma.” Again, he joined Dr. King to protest in Birmingham as the crowd was met with fire hoses and police dogs. It was in fact Reuther who bailed King out of jail following the demonstration. In 1963 Dr. King began planning a march on Washington. King decided to hold a march in Detroit first as to test the waters before going to Washington. The “Walk to Freedom March” was organized from an office at the UAW’s headquarters Solidarity House, with space donated by Walter Reuther. Dr. King also planned the March of Washington from the same office.

Dr.-Martin-Luther-King-Jr.-with-Walter-Reuther-before-speaking-at-historic-march-on-Washingrton

As you can see the UAW and Dr. King have a rich history together. That is why it is important that we take this UAW negotiated holiday and treat it as a day of service. It was Dr. King who said “Life’s most persistent and urgent question is, ‘What are you doing for others?'”  To honor that instead of taking the day off, take the day on through service and citizenship. There are numerous organizations that could use your help, including many activities through UAW local unions and Regions. The Corporation for National and Community Service is also a great resource. https://www.nationalservice.gov/mlkday

In this tone of service and appreciation, we would like to thank our UAW bargaining team for negotiating to get Martin Luther King Jr. Day as a paid holiday along with all our other UAW-GM negotiated holidays. It is important to remember that when they bargain, the whole contract is up for renegotiation not just wages. Some of the language we rely on everyday must be defined and renegotiated such as; seniority, holidays, disability leave, sub pay, transfer rights etc. This is easy to take for granted, so many thanks to our UAW-GM bargaining team!

MLK Day

GM Choices for Care from Blue Cross

Need minor medical care? Don’t wait — there’s a smart place for whatever you’ve got.

It’s late at night and you’re not feeling well. You know it’s not an emergency, but you want to see a doctor and figure out what’s going on. Why wait? Whether it’s the middle of the night or Sunday afternoon, you and your family have convenient, smart options for non-emergency medical care from the General Motors Health Care Program, including:

Primary care doctor

Call your primary care doctor first when you’re not feeling well. He or she knows you best and understands your health history.

24-Hour Nurse Line

Talk to a registered nurse at no cost, anytime day or night, when you have questions about an illness or injury.

Blue Cross Online VisitsSM

Call or video chat with a U.S. board-certified doctor using a smartphone, tablet, or computer, anytime of day or night.

Retail health clinics

Get walk-in medical care and a prescription, if you need it, at select drug store chains with extended hours near your home or workplace.

Urgent care centers

Get convenient in-person care for a wide range of non-emergency situations, even late and on weekends.

These smart, convenient options for care can be used for illnesses and injuries such as:

  • Mild allergy symptoms
  • Sore throat and cough
  • Colds and flu
  • Low-grade fever
  • Earache
  • Eye irritation or redness
  • Skin rash
  • Minor burns, cuts and scrapes
  • Painful urination
  • Sprains and strains

 

So go ahead and get the care you need, right when you need it.

Learn more about your options for non-emergency care at bcbsm.com/gmcare.

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