July 29, 2014
CARSON CITY, Nev. (AP) - A Nevada board has agreed to repay $1.7 million in Medicare payroll taxes owed to the IRS for judges and some other employees that haven't been paid in more than two decades.
The Board of Examiners sanctioned the settlement Tuesday, calling it a good deal for the state and the employees because it avoids costly penalties.
The federal government began requiring state and local government to pay into Medicare in 1986. But judges and members of board and commissions apparently fell through the cracks and neither the employee nor state share was paid for 27 years.
The problem was discovered this year. Under IRS regulations the federal government can only demand back payments for three years.
Judges and other affected employees will have to repay the state nearly $848,000.