Whoops

A boo-boo on Temple City's part may cost the city $50,000 and may earn City Manager/City Attorney Charles Martin a raise, according to Star-News reporter Alfred Lee.

TEMPLE CITY - When city manager-city attorney Charles Martin revealed earlier this month that the city had been flagged by the IRS for improperly hiring full-time employees as independent contractors, he attributed it mostly to Temple City's contracting of parks and recreation workers.

Turns out, Martin himself was part of that problem.

Since taking over the dual roles of city manager and city attorney in 2005, Martin has been paid as an independent contractor, rather than as a city employee.

That has allowed Temple City to avoid providing medical, dental or retirement benefits to Martin, and to pay him less than it might otherwise have to.

The city also does not have to pay or withhold taxes on Martin's behalf, as he gets paid on a 1099 tax form instead of a W-2. Such contractors are responsible for paying their own income taxes.

The city, which may be fined up to $50,000 by the IRS for such hiring practices, plans to comply with the audit by changing the wording of some contracts, and also by converting some contractors to regular employees.

Martin will be reclassified as a full-time employee as of Jan. 1, and he might receive a pay increase at that time, Financial Services Director Monica Molina said.