Interlake employees received an email from Human Resources a couple of weeks ago with information about changes being made to the process of reporting earnings to state tax agencies. Many of our members have had questions about the changes being made, and the Local Union reached out to Interlake Steamship to clarify some of the common questions being asked.
State Tax Withholding - sailing season
Interlake employees signed on to an Interlake vessel will begin to see state taxes being withheld from their paychecks as early as March 24th. Income will be reported to your current state of residence and the proper amount of taxes withheld. Included in the email announcing these changes is a link to the appropriate tax forms to complete and return to Human Resources. Having state taxes withheld from your checks is not optional - and failure to complete the withholding forms will not exclude you from having taxes withheld (the forms are for claiming dependents, etc.)
Not all states are currently set up, so if you do not see state taxes withheld from your paycheck, the office doesn't have your state set up but will be finishing up within the next several weeks.
State Tax Withholding - winter work
While working winter work, you will be taxed state wages for the state you are working in rather than the state in which you reside.
- Sturgeon Bay - Wisconsin state taxes withheld
- Fraser Shipyards - Wisconsin state taxes withheld
- Detroit Nicholson - Michigan state taxes withheld
- Toledo Shipyards - Ohio state taxes withheld
- DonJon Shipyards - Pennsylvania state taxes withheld
This change takes place because winter work is not considered a "Jones Act" job, where income is made as part of your participation in interstate commerce, whereas winter work wages are earned just as they are for any regular land-based job where taxes are withheld for the state in which the business is located.
If you have tax questions, we recommend you consult your tax preparer for the best advice for your particular needs.
Unemployment
These changes being made will affect how you file for unemployment. In the future, you will need to file for unemployment from your state of residence. You will no longer file with the State of Ohio unless that is your state of residence. We will post information about changes to unemployment filing procedures at www.usw5000.org/unemployment.
Check your Interlake provided email account for further information about these changes, and if you have questions, contact Kathy Dorko for more information.
As always, feel free to contact USW Local 5000 for any additional concerns you may have about these changes.
