HomeMy Public PortalAbout12-8389 The Internal Revenue Service Sponsored by: City Manager
Resolution No. 12-8389
A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF
OPA-LOCKA, FLORIDA, AUTHORIZING THE CITY MANAGER
TO PAY THE INTERNAL REVENUE SERVICE (IRS) THIRTY
FOUR THOUSAND,ONE HUNDRED SIX DOLLAR AND NINETY-
NINE CENTS ($34,106.99) FOR CALENDAR YEAR 2009, 941
EMPLOYMENT TAXES, PAYABLE FROM ACCOUNT NO. 28-
514390; PROVIDING FOR INCORPORATION OF RECITALS;
PROVIDING FOR AN EFFECTIVE DATE.
WHEREAS,the IRS performed an Audit and their findings concluded that the City of Opa-
locka owed 941 Employment taxes for calendar year 2009; and
WHEREAS,the City Commission of the City of Opa-locka desires to be in compliance with
941 Employment tax law,as per the IRS Audit findings,and therefore authorizes the City Manager
to pay Thirty Four Thousand One Hundred Six Dollars and Ninety-Nine Cents($34,106.99),to the
Internal Revenue Service for calendar year 2009.
NOW,THEREFORE,BE IT DULY RESOLVED BY THE CITY COMMISSION OF
THE CITY OF OPA-LOCKA, FLORIDA:
Section 1. The recitals to the preamble herein are incorporated by reference.
Section 2. The City Commission of the City of Opa-locka hereby authorizes the City
Manager to pay the Internal Revenue Service(IRS) Thirty-four Thousand, One Hundred Six
Dollars and Ninety-nine Cents ($34,106.99), for 941 Employment Taxes for calendar year 2009,
payable from Account No. 28-514390.
Section 3. This resolution shall take effect immediately upon adoption.
Resolution No. 12-8389
PASSED AND ADOPTED this 11th day of April, 2012.
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MY'/7 TAYLOR
MAYOR
itest to:
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J64.nna Flores
I erim City Clerk
Approved as to form and legal s •-ncy:
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Jose/rice'ice?Jr
Cit, • tto ey
Moved by: COMMISSIONER HO ES
Seconded by: VICE MAYOR JOHNSON
Commission Vote: 5-0
Commissioner Holmes: YES
Commissioner Miller: YES
Commissioner Tydus: YES
Vice-Mayor Johnson: YES
Mayor Taylor: YES
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City of Opa-Locka
Agenda Cover Memo
Commission Meeting 04-11-2012 Item Type: Resolution Ordinance Other
Date: X
(EnterXin box)
Fiscal Impact: Ordinance Reading: 1st Reading 2nd Reading
(Enter X in box) Yes No (Enter X in box)
X Public Hearing: Yes No Yes No
(EnterXin box)
Funding Source: (Enter Fund&Dept) Advertising Requirement: Yes No
(Enter Acct No.) General Fund- Legal (EnterXin box) X
Contingency
28-514390
Contract/P.O.Required: Yes No RFP/RFQ/Bid #:
(EnterXin box) X N/A
Strategic Plan Related Yes No Strategic Plan Priority Area: Strategic Plan Obj./Strategy: (list the
(Enter X in box) X specific objective/strategy this item will address)
Enhance Organizational
Bus.&Economic Dev p Compliance with IRS Audit findings
Public Safety n and Tax Laws for Municipal
Quality of Education D Governments.
Qual.of Life&City Image El
Communcation
Sponsor Name City Manager Department: Finance
Short Title:
Resolution Authorzing the City Manager to pay prior year 941 employment taxes in an amount not to
exceed $34,106.99 to the Internal Revenue Service based on Internal Revenue Audit findings for
Calendar Year ended December 31, 2009.
Staff Summary:
The purpose of this payment is to bring the City into compliance with current Internal Revenue Service
941 employment tax laws.
Proposed Action:
Staff recommends approval of payment and implementation of Internal Revenue Service
recommendation.
Attachment(s):
Resolution authorizing Payment to the Internal Revenue Service (IRS)
Memorandum Summarizing IRS Findings
IRS 941 Tax Summary
" THE GREAT CITY "
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Bryan K. Finnie aRpsE 305-953-2821
City Manager 305-953-2823
Fax:305-953-2870
MEMORANDUM
To: Mayor and Commissi•ners
From: Bryan K. Finnie, City -r
Date: April 2, 201
RE: Updated Summary of Department of Internal Revenue Service(IRS) Audit Findings
The IRS has completed an audit of the City's employment tax practices for the calendar year
ended December 31, 2009 and has made the following five determinations:
a) Worker Classification; Five elected officials performing services for the City as Mayor,
Vice Mayor and City Commissioners are employees for the purchase of Federal
Insurance Contribution Act (FICA) and Federal Income Tax Withholding (FITW) on the
wages of the source.
b) Individuals performing services for the City as Building Inspectors are employees for the
purchase of FICA and FITW.
c) Four employees who also work as independent contractors on Saturdays to collect
business license fees at the Flea Market are employees for purpose of FICA and FITW.
d) Employees who receive term life insurance policies over$50,000 and paid for by the City
received a fringe benefit that is subject to FICA and FITW.
The total monetary value of all these findings adds up to $34,106.99. We have reviewed and
discussed these findings in great detail with the IRS auditor. This is a reduction from $34,264.08,
which was the previous estimate. He has determined that if the City agrees and pays the
assessed amount, and implements the findings effective immediately, the IRS will not go back to
audit 2010 and 2011.
I recommend that the Commission approve the payment of this assessment to the IRS and avoid
further cost to the City.
END MEMORANDUM
CITY HALL• 780 FISHERMAN STREET, 4TH FLOOR, OPA-LOCKA, FLORIDA 33054 • (305)688-4611
AN EQUAL OPPORTUNITY EMPLOYER AND DOES NOT DISCRIMINATE ON THE BASIS OF HANDICAP
APR-02-2012 11 06 IRS 561 616 2161 P.02
City gf O,ns-iocke 941 Tax Summ$
_ -� Wages Soc. Security Medicare FIT* 941 Tax
Term Life Insurance Premiums $ 2,927.15 $ 362.97 $ 84.89 $ - $ 447.85
5 Employees over$1 06,800 $ 933.13 $ - $ 27.06 $ - $ 27.06
Supplemental Wages $ 2902400 $3,598.98,- $841.70 $2,175.53 $ 6,616.21
Take Home Vehicles $ 1,605.00 $ 199.02 $ 46.55 $ 227.14 $ 472.71
Additional wages to employees $ 34,48928 $ 4,160.96 $1,000.19 $2,402.67 $ 7,56183
Quarterly $ 8,622.32 $ - 1,040.24 $ 250.05 $� 600.67 $ 1,890.96
Reclassified Workers** $276,478.60 $1758526 $4,810.73 $4,147.18 $26,54117
quarterly $ 4,396.31 $1,202.68 $1,036.79 $ 6,635.79
Totals _ .~.. $34,108.99
*FIT%based on actual W-2 forms for Take Home Vehicles(14.15%)and Supplemental wakes(7.56%).
**Taxes for reclassified workers are computed under IRO 3609(M,rates:7.44%, 1.74%and 1.5%.
Potential Form 4669 FIT Tax Credits:
ARSHAD VIQUAR $ 1,268.55 _
GORDY M SAMPSON $ 348.90
HEATHER BRADY $ 172.63 T
MIGDAI_INA SANTOS $ 305.36 ��.......___
OLLIE COLLINS $ 80.10
VINCENT ROBINSON $ - _
$ 2,175.54 Potential Net Tax Due $31,931.48
Credit for income tax Pa ents will be given if it is agreed these 1099 payments should be wages
and signed forms 4669 are returned.
The •olice ciothin• cleanin• allowance was removed from the audit report, as the Cit =•revs to b=•in
taxin• it
TOTAL P.02