Greensburg paid nearly $87,000 to the Internal Revenue Service as a result of an audit that determined the city and its police officers had not been paying Medicare taxes.
City administrator Kelsye Hantz said the audit looked at 2021 and the payment, which covers the amount owed by the city and officers, was made during the summer.
Had the IRS looked at other years, the payment likely would’ve been much higher, she said. The payment did not include any interest or penalties. The issue has been corrected, she said.
Medicare taxes are typically automatically deducted from paychecks, with the employee paying 1.45% of their income and the employer paying the same amount. The taxes fund the federal Medicare health insurance program.
Jeannette had to make a payment of about $100,000 to the IRS earlier this year after an audit of 2020, 2021 and 2022 found the same problem.
