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HomeMy WebLinkAboutReso 108-2018 (18-543)City of South San Francisco P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA City Council Resolution: RES 108 -2018 File Number: 18 -543 Enactment Number: RES 108 -2018 RESOLUTION AUTHORIZING THE CITY OF SOUTH SAN FRANCISCO TO CONTRIBUTE CERTAIN EMPLOYEES' SHARE OF OLD -AGE, SURVIVORS AND DISABILITY INSURANCE PROGRAM CONTRIBUTIONS FOR TAX YEARS 2015, 2016, 2017, AND 2018 THROUGH THE PAY PERIOD ENDING JUNE 28, 2018. WHEREAS, the City of South San Francisco offers its employees generous benefits, which include a pension through the California Public Employees' Retirement System (Ca1PERS), and the Old -Age, Survivors and Disability Insurance Program ( OASDI); and WHEREAS, as part of the City's implementation of the new Human Capital Management System (HCMS), staff discovered that twelve employees were incorrectly entered as exempt from OASDI; and WHEREAS, OASDI contribution rates are set at 6.2 percent of pay for both the employer and employee. In order to ensure that these employees receive the Social Security benefits that they have earned, the City, as the employer, must pay the employer share, estimated to be $58,704.15; and WHEREAS, staff recommends that the City pay the affected employees' share, estimated to be $58,704.15, which will increase the affected employees' taxable income; and WHEREAS, staff further recommends that the City increase the taxable income to mitigate the tax impact to the affected employees. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of South San Francisco does hereby: Authorize payment of the affected employees' share of OASDI for tax years 2015, 2016, 2017, and 2018 through the pay period ending June 28, 2018, as shown in Exhibit A, attached herein, and Authorize an increase to the affected employees' taxable income to mitigate the tax impact. At a meeting of the City Council on 6/27/2018, a motion was made by Mark Addiego, seconded by Pradeep Gupta, that this Resolution be approved. The motion passed. City of South San Francisco Page 1 File Number: 18 -543 Enactment Number: RES 108 -2018 Yes: 4 Mayor Normandy, Mayor Pro Tern Matsumoto, Councilmember Gupta, and Councilmember Addiego Absent: 1 Councilmember Garbarino Attest Krista Martinei City of South San Francisco Page 2 Employee OASDI Employee Contribution Due A 23,882.40$ B 5,784.26$ C 7,032.92$ D 2,799.80$ E 12,418.59$ F 1,067.76$ G 964.47$ H 2,223.46$ I 67.43$ J 18.60$ K 2,255.32$ L 189.15$ 58,704.15$ EXHIBIT A