Minutes - Council - 01/09/2001 - Laserfiche WebLink

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2) Request Authorization to Make Corrections Necessary for Pay Equity Implementation Report Human Resources Manager Heryla stated that the Department of Employee Relations notified the City of Ramsey of the need to complete a Pay Equity Implementation Report reflecting salary and benefit information as of December 31, 2000. Staff forwarded the necessary information to a consultant who ran the statistical software necessary to calculate the underpayment ration. While an underpayment ratio of 80 percent or greater would find the City of Ramsey in compliance, the calculation indicated an underpayment ratio of 67.4 percent which is out of compliance. The underpayment ratio of 67.4 percent requires an increase in maximum wage for two female classes as of December 31, 2000. In reviewing the information and looking for a least cost alternative, the consultant recommended increasing the Finance Officer's wage by $54.00 and the Assistant City Administrator's wage by $229.00 retroactive to December 31, 2000. Therefore, the change in salary necessary to bring the City of Ramsey into compliance would be $283.00. Due to the tax liability implications, staff would like to make these corrections sooner than later. The City of Ramsey, per IRS regulations, is required to make electronic payment tax deposits on a semi-weekly deposit schedule. This schedule means that when wages are paid on a Wednesday, Thursday, or Friday, the deposit is due by the following Wednesday. If wages are paid on a Saturday, Sunday, Monday, or Tuesday, the deposit is due by the following Friday. To ensure a timely payment, the transaction must be completed by 4:00 p.m. at least one business day prior to the due date for both state and federal taxes. Because the checks would need to be backdated to December 31, 2000, the City may be subject to deposit penalties. There is a provision for deposit shortfalls requiring a deposit the first Wednesday or Friday that falls on or after the 15"~ of the month following the month in which the shortfall occurs. If the IRS determines that the City of Ramsey can use the shortfall provision, the deposit would need to take place no later than January 16, 2001. However, if the IRS does not rule in favor of the City of Ramsey and meeting the requirements for the deposit shortfall, the City may be penalized for amounts not properly or timely deposited at the rate of either 5 percent for deposits made 6 to 15 days late or ten percent for deposits made 16 or more days late. Motion by Councilmember Hendriksen, seconded by Councilmember Anderson, to recommend that the City Council accept the recommendation of the consultant with regard to the Pay Equity hnplementation Report and authorize a correction in wages of $54.00 to the Finance Officer and $229.00 to the Assistant City Administrator retroactive to December 31, 2000. Motion carried. Voting Yes: Mayor Gamec, Councilmembers Hendriksen, Anderson, Kurak, and Zimmennan. Voting No: Councilmember Kurak. City Council/January 9, 2001 Page 33 of 35