2002-01-23 CC Packet - Laserfiche WebLink

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City of Centerville January 16,2002 Page Two We also agreed the information from the payroll system to the amounts received by PEBSCO. Over the five-year period, there was a difference of$l ,213.62 between PEBSCO totals and the City's payroll. This appears to be a timing difference and is not significant overall. We were also presented with two checks written at the end of 1999 and 1998 for $1,439.06 and $3,647.00 for consideration. These appeared to be remittances of collections for several pay periods. Although the City did not have any documentation of the employees that made up the checks, the account balance at PEBSCO appeared reasonable, and the checks appeared proper. The total amount per year needing withholding is summarized below: Deferred Compensation in lieu of Health Insurance 1996 1997 1998 1999 2000 2001 (through October) $ Total 6,836.94 8,516.25 6,702.70 10,589.23 6.272.00 $.38.917.12 Social Security and Medicare payment required (/5.3% x $38,917.12) $.5.954.32 Summary of results: . We noted no instances where the health insurance and the deterred compensation in lieu of health insurance exceeded the benefit allowed by the City. . We noted that Social Security and Medicare was not Withheld on any deferred compensation bendit in iieu vf health insurance. We recommend amending the W..2's for each year, paying both sides of withholding as soon as possible and reflecting the withholding in firs! quarter 2002. The Council should then decide if they will request the employee half from individual employees. . It appeared that many employees received the benefit over the five-year period. There was no evidence that a selccted few were presented with the plan. . One employee exceeded the maximum contribution of $8,000 in 1999 by $112.50. We would recommend correcting this error by issuing a 1099R for 1999 to the affected employee.