|To:||All UPS Agencies|
|From:||Ronald S. Mitchell, Director|
|Subject:||Per Diem Payments to Board Members|
OSUP recently attended an Outreach Workshop conducted by the State Treasurer's Office, the Social Security Administration, and the Internal Revenue Service. At the workshop an IRS representative indicated that persons who receive per diem pay, such as board members, are considered employees and must have a W-2 produced to report this income. These wages should not be reported on a Form 1099. Please refer to Office of Statewide Reporting and Accounting Policy's memorandum #SA 97-57 for a detailed explanation of per diem payments to board members.
The following are special UPS procedures for setting up and entering time for employees who are paid on a per diem basis:
Example: Board member "A" is paid $75.00 per day to attend a monthly meeting. Board member "B" is paid $75.00 per meeting to attend a monthly meeting regardless of the number of days. Each attends a 3 day meeting.Enter three (3) hours for board member "A" to receive $225.00 Gross Wages.
Enter one (1) hour for board member "B" to receive $75.00 Gross Wages.
If you have any questions about the above procedures, please call the Help Desk at (504) 342-8928. Any questions about whether an employee should pay retirement should be directed to each retirement system. Questions regarding Social Security and Medicare withholdings should be directed to Ms. Linda Yelverton of the State Treasurer's Office at (504) 342-0026.
c: Linda Yelverton