Los Angeles County Municipal Code Ch. 10 Social Security Tax Contributions

The purpose of the ordinance codified in this chapter is to provide for the computation of Social Security Tax (FICA) contributions for employees covered by Social Security. (Ord 327 § 1, 1980.)

A.

"Affected employees" means those individuals subject to a FICA tax liability whose wages have not yet met the total required to generate the maximum annual FICA tax obligation during the current calendar year.

B.

"Base salary" means and is used in conformance with the definition of "base rate" as contained in Section 9.07 of the Flood Control District Code.

C.

"Income" means the total compensation paid to an individual by the District, as defined by the Federal Internal Revenue Service, which is the combination of wages and the District payment of affected employees' FICA tax liability.

D.

"Take-home pay" means the payment made to an individual after the deduction of all mandatory tax obligations and voluntary contributions.

E.

"Wages" means the compensation prescribed in Chapter 9 of this code, divided by the sum of one, plus the appropriate Social Security tax in effect at the time of payment.

(Ord. 327 § 2, 1980.)

A.

Section 209(f) of the Social Security Act provides that if the District pays the employee FICA tax without deduction from the employees' compensation, the employees' tax liability is based on wages, as defined in Section 10.03, rather than income before any deduction for Social Security.

B.

By means of this chapter, the District is implementing Section 209(f) by redefining the wages of affected employees as set forth above, and is paying the employee's tax directly without deduction from wages.

C.

The effect of this change is that affected employees' income will remain the same, wages will be adjusted, and take-home pay is increased. The base salary of affected employees remains unchanged.

(Ord. 327 § 3, 1980.)

Notwithstanding the provisions of Chapter 9 of this code, or the provisions of this or any other ordinance, the wages of affected employees are adjusted by the value of the employee's FICA tax liability on such adjusted wages paid directly by the District. The value of the FICA tax paid will be added to the adjusted wages to derive the affected employees' annual income reported to the state and federal governments for income tax purposes.

(Ord. 327 § 4, 1980.)

Pursuant to the contract between the Retirement Association and the state agency administering the Social Security System under Section 218 of the Federal Social Security Act, and as provided by Section 209(f) of said Act, the District shall pay directly to said state agency all Social Security that may be required for all affected employees, as well as the District share. Such contribution shall be computed on wages as defined in this chapter.

(Ord. 327 § 5, 1980.)

A.

This chapter shall be operative only as long as the provisions of Section 209(f) of the Federal Social Security Act continue in force as currently written.

B.

This chapter shall be inoperative if all or any part of it is found to be illegal by a court of law.

C.

This chapter only applies to those persons employed by the District who meet the definition of affected employees as defined in this chapter.

(Ord. 327 § 6, 1980.)

The ordinance codified in this chapter shall be operative on September 30, 1980, and shall be applied to all salary payments made on or after that date regardless of the dates of service that resulted in such payments.

(Ord. 327 § 8, 1980.)