Please excuse my ignorance but it has been along time since I've worked in payroll. Our City Council has just approved matching deferred comp for managers and directors. So, as we are trying to set this up in payroll, we are running into some questions. My Senior Accountant says that the City's portion must be taxed for Federal, State, and Medicare because it is a benefit and all benefits are taxable. Well, this sounds logical but deferred comp is supposed to be pre-tax, that, of course, is one of its advantages. Additionally, Council has approved that a portion of unused medical & dental premiums can go to deferred comp, would that be a taxable benefit or not because it is going to deferred comp? For those of you that have matching deferred comp, please let me know how you set it up. Thanks. Jackie Acosta Director of Finance City of Carson
