CCP 03-08-1993 - Laserfiche WebLink

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. Arden Hills Council 5 February 22, 1993 Mayor Sather said he would support the City's taking responsibility for the entire FICA matter, furnishing the appropriate forms to the affected employees, and allowing a fixed amount for them to prepare amended returns. Post stated that the City's auditors estimate that it would cost about $50 per year for employees to amend their tax returns. He said affected employees could be reimbursed for tax preparation costs using the standard employee expense reimbursement process with a specific allowance determined by Council. Councilmember Aplikowski asked if there is any indication as to how affected employees will receive this news. Post stated that he was not part of City staff when the incorrect payroll process was implemented, and he believes the affected employees are faced with an inconvenience rather than financial harm. Councilmember Probst asked if the City has any exposure if affected employees don't file amended tax returns. Post . stated that the City's action of filing corrected W-2c forms will allow affected employees to file amended returns. Discussion took place as to what amount the City should allow for amended tax return preparation costs and how the matter should be administered. MOTION: Probst moved, seconded by Aplikowski, to take the following action as a means of correcting the identified past employment tax underreporting issue: 1) Authorize City staff to pay and properly report both the employee's and the employer's share of back FICA, and 2) Provide affected employees the forms they will need to amend their individual income tax returns for the affected years, and .