Quorum court adopts emergency personnel policy; amends payout language to issue 75% net stipend pending tax clarification

Van Buren County's quorum court approved an emergency amendment to the county personnel policy and resolved immediate uncertainty about payouts to employees who waive county-provided insurance.

Mary Phillips, who sponsored the ordinance, explained the intent was to "reimburse those people who did not take the insurance" but acknowledged committee language and audit guidance had created confusion about whether payments should be treated as a reimbursement, a cash payout or a stipend. The personnel policy update was presented as an emergency ordinance to take effect immediately upon passage.

During extended debate, court members said an auditor (as referenced during the meeting) advised that labeling a payment a "reimbursement" could cause it to be counted as earned income and therefore affect retirement and payroll taxes. Some members argued the issue was one of wording rather than substance and proposed alternatives, including calling the payment a stipend. Members discussed timing — the county needs to make year-end payouts soon — and the risk that paying employees gross and later owing taxes would leave the county liable.

To balance urgency and caution, the court adopted an amendment to issue 75% of the payout as a net payment to employees while withholding FICA and APERS (retirement) amounts pending further confirmation of whether those liabilities are owed. Nikki moved the amendment and the court approved it. A member described the practical implementation: the county would pay the net amount employees have come to expect and place the withheld sums in a liability account until auditors or IRS guidance clarifies whether the withheld funds should be remitted for payroll taxes/retirement or returned to employees.

The court also discussed that, where necessary, a follow-up cleanup ordinance or transfer would be used to reconcile any needed employer-side taxes or retirement contributions after guidance is received. Members emphasized the need for staff to secure written confirmation from auditors or the IRS on the correct accounting treatment and for the budget/finance committee to reconcile the accounting consequences in the next meeting.

The ordinance and the amendment passed by roll call; clerical refinements to language across the personnel policy and related appropriation ordinances were to be prepared by county staff and returned to the court for final bookkeeping.