Text: SSB00153 Text: SSB00155 Text: SSB00100 - SSB00199 Text: SSB Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. Section 411.8, subsection 1, paragraph i, Code 1 2 1995, is amended to read as follows: 1 3 i. (1) Notwithstanding paragraph "g" or other provisions 1 4 of this chapter, beginning January 1, 1995, member 1 5 contributions required under paragraph "f" or "h" which are 1 6 picked up by the city shall be considered employer 1 7 contributions for federal income tax purposes, and beginning 1 8 January 1, 1996, shall be considered employer contributions 1 9 for state income tax purposes, and each city shall pick up the 1 10 member contributions to be made under paragraph "f" or "h" by 1 11 its employees. Each city shall pick up these contributions by 1 12 reducing the salary of each of its employees covered by this 1 13 chapter by the amount which each employee is required to 1 14 contribute under paragraph "f" or "h" and shall pay the amount 1 15 picked up in lieu of the member contributions to the board of 1 16 trustees for recording and deposit in the fund. 1 17 (2) Member contributions picked up by each city under 1 18 subparagraph (1) shall be treated as employer contributions 1 19 for federal and state income tax purposes only and for all 1 20 other purposes of this chapter and the laws of this state 1 21 shall be treated as employee contributions and deemed part of 1 22 the employee's earnable compensation or salary. 1 23 Sec. 2. Section 422.7, subsection 29, Code 1995, is 1 24 amended to read as follows: 1 25 29. Add, to the extent not included, the amount of the 1 26 taxpayer's employee contributions picked up by the taxpayer's 1 27 employer under chapter 97Aor 411. The director shall by rule 1 28 provide a formula to exclude income, to the extent included, 1 29 from adjusted gross income amounts added under this subsection 1 30 which are subsequently returned to the taxpayer as retirement 1 31 benefits or otherwise. 1 32 Sec. 3. EFFECTIVE AND APPLICABILITY DATE. This Act takes 1 33 effect January 1, 1996, and applies to tax years beginning on 1 34 or after January 1, 1996. 1 35 EXPLANATION 2 1 This bill alters the tax treatment of employee 2 2 contributions under the statewide fire and police retirement 2 3 system established in chapter 411 by providing that the member 2 4 contributions shall be picked up by the employer and shall be 2 5 considered employer contributions for state income tax 2 6 purposes beginning January 1, 1996. Legislation enacted in 2 7 1994 provided for this member contribution pick up for federal 2 8 income tax purposes beginning January 1, 1995. 2 9 LSB 1873SC 76 2 10 rj/sc/14
Text: SSB00153 Text: SSB00155 Text: SSB00100 - SSB00199 Text: SSB Index Bills and Amendments: General Index Bill History: General Index
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