10/06/92 - Laserfiche WebLink

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I I I I I I I I I I I I I I I I I I CASE # 9 DISCUSSION REGARDING COMMISSIONER EXPENDITURES , ~ By: Zoning Administrator Sylvia Frolik Background: The Internal R~ve~ue Service has ruled that payment for expenses not substantiated with expense accounts is ¢o~sideped earnings and are subject to F.I.C.A. and Medicare employer costs, possibly federal and sta~e i~¢ome tax withholding, and W-2 annual earning reporting. ObservationS: For many ye_~s, th',e Planning and Zoning Commission has been receiving what is referred to in City Code as e~xPenditure payment for meetings attended. Effective januS:l? 1993, the City will do one of the following: a) !Pay texpenses based upon supporting documentation; said payments are not subject ito !RS reporting. b) '!Pay iexpenses at a flat rate subject to payroll taxes and withholdings; said payments iWill[be reported to the IRS. The Planning ~and, ,Zoning Commission currently receives an expenditure payment of $25 per meeting for .the{iCha. irperson and $20 per meeting for the commissioners. Maintaining a payment at this rate that is~ not Subject to payroll taxes and withholding would require submitting an expense report w~th supposing documentanon to show that expenses incurred in attending the meeting amounted to $~0-$25. The City CounCil has requested that the Planning and Zoning Commission indicate their preference with respect toiOp~ons (a) and (b) above. For your infoxtma~ion, please refer to the enclosed memo from Finance Officer Helling dated September 2, RecommendatiOn: · : Com.n!issi0n Action: Will b~based on your discussion. Review Checkl P&Z: st: ' Finance Officer 10/6/92