Agenda - Council - 03/11/2014 - Laserfiche WebLink

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QUICK REFERENCE GUIDE FOR PUBLIC EMPLOYERS In some situations, the road commissioner may hire a crew to perform certain services. In this case, it may be necessary to review of facts and circumstances to determine whether the workers are employees of the governmental entity or of the road commissioner. Animal Control Officer If an animal control officer holds an elected or appointed position, that is generally an indication of employee status and the remuneration is considered wages. Other Workers Most other types of workers in a local government entity, including moderators, civil emergency directors, bus drivers, harbormasters, correction officers, fire chiefs, fire and ambulance workers, airport managers, summer aides, and librarians are generally considered employees, but in each case the common-law standards should be considered. 7. FRINGE BENEFITS Fringe benefits include any compensation other than cash wages. The general rule is that the compensation is taxable; however, the Internal Revenue Code provides exclusions for numerous forms of noncash compensation provided to employees. Some of the common fringe benefit issues encountered by public employers are discussed below. For a more detailed discussion of fringe benefits, see Publication 15-B and the FSLG Fringe Benefit Guide. Reimbursement for Expenses In general, reimbursements or expenses paid by the employer on behalf of the employee, such as travel expenses, are taxable unless they are provided for allowable excluded benefits or expenses, and made under an accountable plan. For payments to be considered made under an accountable plan, the employees must: (1) Incur the expenses in the performance of work; (2) Adequately account for the expenses within a reasonable period of time; and (3) Return any amounts in excess of expenses within a reasonable period of time. If the accountable plan rules are met, no tax reporting is necessary. If they are not met, the reimbursements or advances are included in wages, and the employee may deduct allowable business expenses on his or her Form 1040. Government -Owned Vehicles The personal use of a government -owned vehicle is generally a taxable fringe benefit. It may, however, be excludable as a de minimis benefit (infrequent and of little value). Personal use includes the value of commuting in a government -owned vehicle, even if the vehicle is taken home for the convenience of the employer (but see Commuting Valuation Rule, below). The 9