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RELEVANT LINKS: <br />League of Minnesota Cities Handbook for Minnesota Cities 6/8/2022 <br />Elected Officials and Council Structure and Role Chapter 6 | Page 24 <br /> Cities wishing to establish per-diem rates for council members should <br />consult with their financial advisors or the IRS for further guidance. <br />Minn. Stat. § 211B.10, subd. <br />2. An employer must allow a council member to take time off from regular <br />employment to attend council meetings. The time off may be without pay, <br />with pay or made up with other hours as agreed to between the employee <br />and the employer. When the council member takes time off without pay, <br />the employer must make an effort to allow the employee to make up the <br />time with other hours when the employee is available. No retaliatory <br />action may be taken by the employer for absences to attend meetings <br />necessitated by reason of the employee’s public office. <br /> F. Compensation of Mayor and Councilmembers <br /> 1. Payroll <br />IRS: Tax Withholding for <br />Government Workers For purposes of tax withholding, an elected official is an employee of the <br />city. Even if taxes are not being withheld, the IRS treats them as <br />employees for tax purposes. Therefore, the city should collect a W-4 form <br />and any other forms or information necessary to set them up in the city’s <br />payroll system. Elected officials should be paid via payroll check with any <br />applicable taxes withheld and should receive a W-2 at the end of the year. <br />The same is true for any appointed members of boards and commission <br />who receive compensation. <br /> 2. Unemployment & Workers Compensation <br />Minn. Stat. § 268.035 <br /> <br />MN Unemployment <br />Insurance: Covered vs. <br />noncovered employment <br />Elected officials are defined as “non-covered” employees therefore their <br />hours and wages do not need to be included in quarterly reports to <br />Minnesota Unemployment. Elected officials are employees for workers <br />compensation purposes. <br /> 3. Employment Eligibility <br />U.S. Citizenship and <br />Immigration Services: <br />Handbook for Employers <br />Federal regulations require employers to complete an I-9 when hiring <br />anyone who will be compensated. While elected and appointed officials <br />are not “hired”, they are usually compensated for their services. Since <br />there are no exceptions for elected officials or appointed board members <br />found within the guidance from the U.S. Citizenship and Immigration <br />Services Handbook for Employers, it is best practice to collect an I-9 from <br />each official who will receive compensation. <br />27