New Contract COLA Pay Q&A

By admin / On / In Benefits, Contracts, Local 88, Local 88 Officers, Members

1.       On what paycheck will the members see the 2.7% COLA increase to their hourly wage?  

Time worked 1/1 through 1/15 will be paid at the post COLA rate on paycheck dated 1/30/2015.  The new pay rates will be displayed on the printed timesheets for pay period 1/16 through 1/31 but may not be displayed on the timesheets for pay period 1/1 through 1/15 because these timesheets are usually printed early.

2.       When will the members see the retroactive COLA pay?

The retro amount will be paid on the paycheck dated 1/30/2015.

3.       Will the retroactive pay be a separate payment?  

No.  The retro pay will be part of the normal paycheck and will be a line item labeled “/552 Difference from a prev. per”. It is not an option to issue manual checks for these retro payments.

4.       Will the retroactive COLA pay be attributed to the time period it was encumbered (July-Dec 2014)?  Members are very concerned about this question as it pertains to taxable income.

IRS regulations state that the wages are taxable when paid not when earned so the retro will be taxed on the paycheck that it is paid on and will be taxable wages for the 2015 tax year.