Village and union resolve tax-withholding error

GM workers paid 70,000 annually will have 65 withheld.
By TIM YOVICH
VINDICATOR TRUMBULL STAFF
WARREN -- A mix-up by General Motors Corp. -- by either not withholding from employees an increase in Lordstown's income tax or withholding more than it should -- has been tentatively resolved.
A class-action lawsuit seeking an injunction was filed Monday by Jim Graham, president of United Auto Workers of America Local 1112, on behalf of himself and 2,800 GM employees at the Lordstown complex.
But the matter was then temporarily resolved.
Atty. Paul Dutton, Lordstown village solicitor, explained that Judge Peter J. Kontos of Trumbull County Common Pleas Court has officially "taken it under advisement" but an arrangement has unofficially been worked out. "It has been settled," Dutton said
"I consider it to be essentially a done deal," agreed Atty. Dennis Haines of Youngstown, who represents Graham.
Dutton said that a GM worker being paid 70,000 annually will pay about 65 in Lordstown income tax by year's end that wasn't withheld.
Increase OK'd in June
In June, the village council approved an increase in the village income tax from 0.5 percent to 1.0 percent. It was effective July 1.
During July, August and September, the automaker either withheld more than it should have or didn't withhold enough from paychecks.
Graham, according to his complaint, sought an injunction to stop Lordstown from ordering GM to withhold an addition 0.5 percent from upcoming paychecks. He asserted the employees already paid the 0.5 percent.
Dutton explained that GM didn't withhold the increased tax from those workers who live in Lordstown and those living in townships that don't collect income taxes.
As part of the settlement, Dutton said, the unpaid taxes due by the workers will be paid by payroll withholding by GM.
Haines said the unpaid taxes will be withheld during the next two weekly paychecks.
Dutton explained that for those who live in other taxable municipalities, GM withheld too much money. Those workers will be repaid through credits in their future paychecks.
The situation doesn't affect workers who took GM's buyout offer and retired, Dutton added.
He said that Lordstown council and GM must approve the tentative settlement but that he didn't foresee a problem.
"This is a minor correction that had to be made," said Lordstown Mayor Michael Chaffee.
The mayor pointed out that the village didn't make the error, but GM did.
"We're being portrayed as the bad guy and we aren't," Chaffee added.
yovich@vindy.com