Winchester officials say Amazon is back in good standing after not paying its payroll tax for its first four months of operation.
Amazon discovered the proper withholding codes were not setup in the payroll system, according to a letter to the city. The issue was revealed in an internal review of the state and local payroll regulatory findings. No withholdings were deducted from Amazon employee’s paychecks from August to December 2012.
According to a letter sent to the city from AMZN WACS, a subsidiary of Amazon, the total wages paid during the period was $1,808,548.16. After applying the 2 percent tax rate, the amount due to the city was $36,170.96.
“The treasury realized the payments weren’t coming in,” said Interim City Manager J.R. Wilhite. “But they’ve already paid their arrears and interest. They’re squared away. They had an administrative slip-up that was cured.”
Amazon stated that this was a one-time oversight and that they have updated their payroll systems and they are working correctly.
They also said that they hope the city has found Amazon to be cooperative with information to correct this issue.
Mayor Ed Burtner said the penalties will not be assessed.
In other business:
— The board passed a motion to upgrade and install streetlights on South Highland Street, in alleys between Moundale and Belmont avenues and College and Euclid streets, and on Cedar and Rose Mary drives.
— Burtner proclaimed March 2013 as American Red Cross Month in the presence of the board and the American Red Cross.
— The board heard a presentation by Krista Mills, the field office director of the U.S. Department of Housing and Urban Development (HUD), concerning HUD programs impacting Winchester and Clark County.
— The board passed a motion for a standardization for fire lanes so that they will be identical at all businesses and other places. This new ordinance will become effective when a place upgrades it fire lane.
— The board recognized Winchester firefighters Sam Horn, Scottie Bell and Matt Brinegar for their purchase from their own pockets of a new car seat for a citizen and his child in need.
Contact Kendall at ksparks@winchestersun.com.
