City seeks payroll taxes from county

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By Thomas Barr

 SHEPHERDSVILLE - An effort to recoup past due occupational taxes on county employees has resulted in litigation.

The Shepherdsville City Council authorized a lawsuit to be filed against Bullitt Fiscal Court and treasurer Stephanie K. Bradley.

In turn, the county has filed a cross-claim against its treasurer.

At stake is an estimated $115,000 in occupational taxes not withheld from employees since July 1, 2006.

City attorney Joseph Wantland said the ordinance clearly states that those who work within the Shepherdsville city limits must pay an occupational tax. And he said it is the county’s responsibility to determine who must pay.

County attorney Monica Robinson said the issue arose about six months ago and her office began doing research, which included discussions with department supervisors.

She said a spreadsheet was done and each employee listed. The task was then to determine how much time each would spend working inside the city limits.

Currently, a system is in place to code each employee and supervisors are tracking the work done in the city and the correct occupational tax withholdings are being done.

The problem is each department is different and the amount of work done inside the city may fluctuate.

At the end of the research, her office reached the figure of $115,524.59. The city did not disagree with that figure.

The basis of the lawsuit against the treasurer is that the position is bonded for errors and omissions. Robinson believes that since it is the duty of the treasurer to do payroll that her bond should cover any errors.

“We don’t know if the insurance will cover the claim,” said Robinson.

However, with the lawsuit, it allows the county and the city to put Ohio Casualty Co., the bond company, on notice.