PHIPPSBURG
The Board of Selectmen on Wednesday night scheduled a Jan. 9 special town meeting to deal with errors in processing town payroll.
During the special town meeting, residents will decide if they want to appropriate money from surplus, to cover FICA and Medicaid withholding taxes on the account of Treasurer Lisa Wallace, as well as IRS interest and penalties. Selectmen and the Budget Committee both suggest a sum of $40,000.
The meeting, at Phippsburg Elementary School, begins at 6 p.m.
Administrators have said the town will be assessed penalties and interest on improperly withheld employment taxes.
Town Administrator Mike Young said the total due from the town to the IRS will be approximately $35,577. The town would pay the debts and then collect the treasurer’s share through a time payment plan, Young said.
Selectman Everett Perkins said Monday he is confident Wallace did nothing wrong.
“This is clearly nothing more than a mistake,” Perkins said. “I asked her point-blank, and she answered me point-blank.”
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