DECATUR — City council members passed an ordinance at Thursday’s meeting that will simplify the way Decatur firefighters are compensated for their services.

The city will now count firefighters as employees and issue them W-2 forms and will pay individual firefighters for first responder runs instead of depositing their earnings into the department’s private account.

Firefighters will still be compensated at the same rate of $15 to $20 per fire run, depending on experience, and $10 per first responder medical run.

The new ordinance specifies that firefighters will be counted as city employees and receive W-2 tax forms. The city will withhold state and federal taxes from their checks. Previously, the firefighters were issued 1099 tax forms and were responsible forpaying taxes on the money they earned from fire runs, but not from first responder runs.

In the past, money firefighters earned from first responder runs was deposited into a “Firemen’s Fund” rather than being paid to the individual firefighters. The account was overseen by the fire chief and fire department members and was to be spent on a vote of the firemen.

Under the new ordinance, the money firefighters earn from medical calls will be paid directly to the firemen and no more deposits will be made in the “Firemen’s Fund” account.

The changes were made under the advice of city attorney Tom Smith and were due to Internal Revenue Service requirements, mayor Charles Linam told the council.

Councilwoman Nan Mc-Clain asked if the city will now have to come up with money for medical supplies, since that is what theFiremen’s Fund was originally established for.

Fire Chief David Flynt said the cost of medical supplies will be covered with Act 833 money and from the fire department’s budget.

Councilwoman Gina Holt asked why the sudden change from 1099 tax forms to W-2 tax forms.

Linam explained that a directive from the IRS requires firefighters and city council members to be counted as employees. The change will actually cost the city more but will save firefighters and council members money, he explained.

Previously, firefighters paid a 15.3 percent tax on the income they reported on the 1099 forms. Now a 7.65 percent tax will be taken out of their checks, and the city will match it with another 7.65 percent tax, Linam explained.

“When the IRS decides they’re gonna close a loop hole, they don’t ask, they just do,” McClain said.

News, Pages 8 on 02/22/2012