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CASE # 9 <br /> <br />DISCI.!SSION REGARDING COMMISSIONER EXPENDITURES <br /> By: Zoning Administrator Sylvia Frolik <br /> <br />Background: <br /> <br />The Internal Revenue Service has ruled that payment for expenses not substantiated with expense <br />accounts is considered earnings and are subject to F.I.C.A. and Medicare employer costs, possibly <br />federal and St~tte ~ncome tax withholding, and W-2 annual earning reporting. <br /> <br />Observations: <br /> <br />For many years, the Planning and Zoning Commission has been receiving what is referred to in <br />City Code aS expenditure payment for meetings attended. <br /> <br />Effective Jantlary 1, 1993, the City will do one of the following: <br /> <br />a) <br /> <br />PaY expenses based upon supporting documentation; said payments are not subject <br />tolRS reporting. <br /> <br />b) <br /> <br />Pay expenses at a flat rate subject to payroll taxes and withholdings; said payments <br />will be reported to the IRS. <br /> <br />The Planning and Zoning Commission currently receives an expenditure payment of $25 per <br />meeting for fl~ Chairperson and $20 per meeting for the commissioners. Maintaining a payment at <br />this rate that. if not subject to payroll taxes and withholding would require submitting an expense <br />report with S~pporting documentation to show that expenses incurred in attending the meeting <br />amounted to' $20-$25. <br /> <br />The City Council has requested that the Planning and Zoning Commission indicate their preference <br />with respect to OPtions (a) and (b) above. <br /> <br />For your information, please refer to the enclosed memo from Finance Officer Helling dated <br />September 2, 1992. <br /> <br />Recommendation: <br /> <br /> CommisSion Action: <br /> <br /> Will be based on your discussion. <br /> <br />Review Checklist: <br />P&Z: <br /> <br />Finance Officer <br />10/6/92 <br /> <br /> <br />