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Memo x85-of <br />GJLIRML MEETING <br />JAN 2 81985 <br />Tot <br />City Council <br />CITY <br />OF <br />CFnMp <br />dROM: <br />Tom Kuehn, Finance Director <br />DATE: January 24, 1985 <br />SUBJECT: Amend Resolution No. 1714 Establishing Salaries for City <br />Employees for 1985 <br />Included within the 1985 salary resolution is the mileage <br />reimbursement rate for use of employee's private cars for City <br />business. This rate was set at $.23 per mile. We have recently <br />been informed by our auditors that the Federal Tax Reform Act of <br />1984 has established the reimbursement rate at $.205 per mile. <br />We have the alternative of leaving the reimbursement rate at $.23 <br />per mile. However, if we do we must include the total <br />reimbursements on the employee's W-2 and withhold income taxes. <br />The employees affected would then be required to file a special <br />form with their income tax returns to claim the expense <br />reimbursement portion of $.205 per mile, to avoid paying income <br />tax on the expense reimbursement portion. If we do not exceed <br />the $.205 per mile rate we need not report the reimbursements at <br />all. In order to simplify reporting requirements for the City <br />and filing of tax returns for the employee, it is my <br />recommendation to adjust the mileage reimbursement rate for City <br />use of private cars on City business from $.23 per mile to $.205 <br />Per mile effective January 28, 1985. 1 have enclosed a <br />resolution amending Resolution 41714. <br />