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