City of
• VERNON
ALIFORNIA
City of Vernon, California
Human Resources Policies and Procedures
Interim Director of Human Resources
City Administrator
Number: 1-8 Effective Date: February 18, 2025March 19, 2013 SUBJECT: EMPLOYEE SEPARATION
PURPOSE:
To define the procedure for separating employees from City service due to resignation, retirement, termination, or death, and to provide for the orderly accounting and return of issued work items belonging to the City of Vernon.
POLICY:
1.0 Definitions
a. Separation: The end of an employee's service with the City. b. Resignation: Voluntary departure initiated by the employee. c. Retirement: Departure due to reaching retirement eligibility. d. Termination: Involuntary departure initiated by the City. e. Death: The passing of the employee during active service.
2.0 Procedure for Notice of Separation/Departmental Form Processing
2.1 Type of Separation
a. Resignation
An employee who wishes to resign from their City employment in good standing must submit written notice of resignation at least two weeks prior to the planned separation date, The written notice must state the reasons for the resignation. Failure to follow the aforementioned 127102333 VE060-001
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procedure may be cause for denying future employment with the City. A resignation becomes Formatted: Font: (Default) Arial final when the [Department Director/Department Head/HR Director] accepts the resignation in writing. Once a resignation is accepted, it is final and irrevocable. A resignation can be accepted by the [Department Director/Department Head/HR Director even if it is submitted less than two. weeks prior to the planned resignation date. At the time of the notice, the employee is to complete and sign a Separation Form.
b. Retirement
An employee planning to retire may provide a written notice to the [Department Director/Department Head/HR Director] prior to the effective date of retirement by completing and signing a Separation Form. A notice of retirement becomes final when the [Department Director/Department Head/HR Director] accepts the notice of retirement in writing. Once a notice of retirement has been accepted, it is final and irrevocable.
In the event of a planned retirement, an employee should attempt to provide sufficient notice to the department to allow for budgeting of possible sick and vacation leave payoffs. See Retirement Policy (CalPERS), for more information on retirement. c. Termination
Termination procedures will comply with due process requirements, where applicable. Human Resources is to oversee the process to ensure compliance with legal requirements, and the finance department/payroll to handle final paycheck.
d. Death
Departments must notify the Human Resources Department immediately of the death of an employee. The following forms must be completed and returned to human resources; Notice of Employee Separation Form and a Personnel Action Form.
Departments may also request that a representative be available on-site to assist coworkers in dealing with the employee's death. Departments may also wish to refer surviving family members to grief counseling. The Human Resources Department staff is also available to coordinate such services.
The Human Resources Department will coordinate the completion of all necessary paperwork for benefit claims including Life, Accidental Death and Dismemberment (if applicable), and CaPERS with the deceased employee's beneficiaries. Human Resources staff will also request that the appropriate deferred compensation representatives contact the employee's beneficiaries, if applicable.
The Payroll Division of the Finance Department will calculate the final paycheck and deliver it to the beneficiary listed on the employee's most recent Designation of Beneficiary Authorized to Receive Final Payroll Check in the Event of Death Form.
2.2 Departmental Forms Processing and Return of Items
The Notice of Employee Separation form will be completed and, if possible, signed by the employee in all cases of resignation or retirement.
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The supervisor will collect City-owned items from the employee to account for all City-owned Formatted: Font: (Default) Arial items received during employment. The replacement cost of items not returned by the employee will be noted on the Personnel Action Form and deducted from the employee's final paycheck.
Departments will notify Human Resources of impending separation by entering a Personnel Action (PA) with the above-mentioned information.
Notice of Separation/Departmental Forms Processing
a._An employee is asked to notify his or her supervisor at least two weeks prior to the date he or she intends to separate from employment with the City. At the time of notice, if the employee is voluntarily resigning or retiring, the employee will complete and sign a SeparationResignation Form.
a.b. In the event of a planned retirement, an employee should attempt to provide sufficient notice to the department to allow for budgeting of possible sick and vacation leave payoffs. See Retirement Policy (CalPERS), for more information on retirement.
b.c,tn all cases, the Notice of Employee Separation Form will be completed and, if possible, signed by the employee.
c. The supervisor will collect City-owned items from the employee to account for alt City-owned items roceived during employment, The replacement cost of items not returned by the employee will be noted on the Personnel Action Form and deducted from the employee's final paycheck.
Departments will notify Human Resources of impending separation by submitting entering a Personnel Action Form (PAF) with the above-mentioned information. 3,0 Separation Processing Appointment
a. It is the separating employee's responsibility to schedule an appointment with the Human Resources Department for separation processing. The employee may request that this appointment be conducted in person or by telephone. b. Separation processing includes discussion of benefit-related issues including:
1. Final paycheck and/or payoff check
2. Public Employees' Retirement System (PERS)
3. Deferred compensation
4. Health and dental insurance
5. Retiree programs (if applicable)
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6. Address changes/verifications Formatted: Font: (Default) Arial
7. Other benefits information
c. Temporary employees are not required to schedule a separation processing appointment.
4.0 Confidentiality and Non-Disclosure
Separating employees must comply with any applicable confidentiality or non-disclosure agreements. Any City documents or records must not be retained or shared without explicit authorization.
5.0 Compliance
Failure to comply with this policy may result in delays in processing final compensation and may be referred for further action if necessary.
6.0 Contact Information
For questions regarding this policy, contact the Human Resources Department-at linsert contact information.
1. Death of Employee
a. Departments must notify the Human Resources Department immediately of the death of an employee. The forms identified in Section 1 (b-d) must be completed and returned to Human Resources.
Departments may also request that a representative be available on site to assist co-workers in dealing with the employee's death. Departments may also wish to refer surviving family members for grief counseling. The Human Resources Department staff is also available to coordinate such services. b. The Human Resources Department will coordinate the completion of alt necessary paperwork for benefit claims including Life, Accidental Death and Dismemberment (if applicable), and CaPERS with the deceased employee's beneficiaries. Human Resources staff will also request that the appropriate deferred compensation representatives contact the employee's beneficiaries, if applicable:
c.b. The Payroll Division of the Finance Department will calculate the final paycheck and deliver it to the beneficiary listed on the employee's mest recent Designation of Beneficiary Authorized to Receive Final Payroll Check in the Event of Death Form.
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PROCEDURE CHECKLIST:!
Responsibility Action
Employee 1. Notifies Supervisor of intention to
separate at least two weeks prior to - Formatted: Underline effective date.
2. Schedules and then completes a personal
or telephone separation processing
appointment with Human Resources.
3. Completes and submits all paperwork
provided during exit interview.
Department 4. Ensures that the Resignation Form,
Employee Separation Form and
Personnel Action Form are completed and
electronically submitted to Human
Resources.
Collects and records all returned City-
owned items into the computer database to
account for all City-owned items received
during employment. If applicable, delivers
returned City issued property to original
issuing Department (i.e. fID badge and/or
key fob to Human Resources, credit card
to Finance. IT equipment to IT, etc.)
6. The replacement cost of City issued items
not returned by the employee shall be
noted on the Personnel Action Form to be
deducted from the employee's
paycheck.
7. Notifies Human Resources of death of an
employee.
8. If needed, contacts the Employee
Assistance Program to request an on-site
representative for grief counseling when
an employee has died.
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9. Advises the deceased employee's family Formatted: Font: (Default) Arial of the availability of grief counseling
through the Employee Assistance
Program.
Human Resources 10. Provides available benefits information to the employee at time of separation
processing appointment.
11. Completes and submits claim forms for
applicable Life Insurance, Accidental
Death and Dismemberment, and
CaPERS accounts in the event of an
employee's death.
12. Notifies deferred compensation
representatives and requests contact with
the beneficiary in the event of an
employee's death.
13. Files Employee Separation Checklist,
Notice of Employee Separation,
Personnel Action Forms and City ID card
in employee official personnel file.
Formatted: List Paragraph, No bullets or numbering,
Widow/Orphan control, Tab stops: Not at -0.75" + -0.5"+
13.14, Receives and stores City ID and 3.25" + 3.63" + 4" + 4.42" + 4.83 + 5.25" + 5.67" +
6.08" + 6.5" + 6.81" + 7.13" + 7.44" + 7.75" + 8" +
returns key fob to the Police Department. 8.5" + 9" + 9.5" + 10" + 10.5" + 11" + 11.5"+ 12"+
12.5" + 13"
Finance Department/Payroll Division 154. Prepares final paycheck in accordance with payroll procedures after receipt of
separation Personnel Action Form from
Human Resources.
165. Processes final paycheck and delivers to
beneficiary in the event of employee's
death in accordance with the payroll
schedule.
Attachments:
1. Separation Resignation Form
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Formatted: Font: (Default) Arial
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Number: 1-8, Effective Date: March 19, 2013February 18, 2025, -Formatted: Font: (Default) Arial Formatted: Font: (Default) Arial
EMPLOYEE RESIGNATION-SEPARATION FORM Formatted: Font: (Default) Arial If you would like to talk to someone in Human Resources before completing this form, please let us know. We will make every effort to schedule a meeting for you as soon as possible.
Full Name: ID #:_
Department:
Classification:
Resignation Separation Effective Date Close of Business:
Reason for Separation TypeResignation: Resignation_or_ Retirement Reason for Resignation: - Formatted: Font: Not Bold
HOME ADDRESS
Address:
Phone:
I certify that this resignation separation is executed by me voluntarily and of my own free will.
Employee Signature and Date
FOR HUMAN RESOURCES USE ONLY
Last day of work per department (if different):
Accepted Date
Cc: Human Resources Department
Employee
Department
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numbers, Tab stops: 0.25", Left
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ADMINISTRATIVE POLICY MANUAL
TAXATION ON CITY Section 1.1 - Miscellaneous
VEHICLES USED BY CITY
EMPLOYEES
Approval:_
City Administrator
Effective Date: March 17, 2015 - Responsible Department: Finance Dept.
Revised Date: February 18, 2025
PURPOSE OF THE POLICY:
The purpose of this policy is to implement regulations and create administrative procedures for the Finance Department as set forth by the Internal Revenue Service (IRS) regarding the tax reporting required for government-owned vehicles provided to employees. According to the IRS, personal use of a government-owned vehicle is generally a taxable fringe benefit and is considered to be a form of pay. Accordingly, the fair market value of such benefit must be included in the employee's wages unless specifically excluded pursuant to IRS regulations.
LIMITATIONS OF THE POLICY:
This policy shall apply to City employees that have been duly authorized and approved by the City Council or City Administrator or designee to use a City-owned vehicle for official City business.
This policy does not establish the rules and procedures that govern the assignment, use and reporting requirements of City vehicles including take-home vehicles. Please refer to Administrative Policy Section 1.2 - City Vehicle Authorization and Use for such rules and procedures.
This policy is subject to change based on any changes made by the IRS. The City will adhere to current applicable IRS rules and regulations regarding government-owned vehicles provided to employees.
DEFINITIONS:
Lake-home vehicle -Any vehicle that is owned, leased, rented or otherwise under the care, custody or control of the City and is taken from the City premises after normal working hours to remain in "home storage" overnight for use of a City employee or authorized representative for a bona fide City purpose.
Bona-fide City purpose - A bona fide City purpose is conducting official City business only.
Bona fide City purpose does not include personal use or assignment of a take home vehicle as a benefit or as compensation.
Personal use - Includes the value of commuting to and from work in a government-owned vehicle, even if the vehicle is taken home for the convenience of the employer. The personal use of a City-owned vehicle is a taxable fringe benefit and the value of such fringe benefit must be included in wages and is subject to income, social security, and Medicare tax withholding.
Personal use may be excluded as a de minimis benefit (infrequent and of little value).
Employee - For purposes of this policy, an employee includes elected or appointed city officials, and employees An employee is an elected official, or an employee as defined by the IRS requirements.
Fringe benefit -According to the IRS, a fringe benefit is a form of pay for the performance of services. For example, the City provides an employee with a fringe benefit when the employee is allowed to use a City vehicle to commute to and from work. Any fringe benefit that is provided by the City is taxable and must be included in the employee's pay unless the law specifically excludes it.
Taxation on City Vehicles used by City Employees - Section 1.1 Qualified non-personal use vehicles (Exempt vehicles) -= According to IRS regulations and guidelines and for the purposes of tax calculation only, certain vehicles and equipment, particularly emergency and utility service vehicles, designated by IRS regulations are exempt for the purpose of increased tax liability. A qualified non-personal use vehicle is any vehicle the employee is not likely to use more than minimally for personal purposes because of its design. This exemption means that the taxable income of the employee assigned one of the following vehicles will not be affected. According to IRS Publication 15-8, qualified non-personal use vehicles generally include the following vehicles: IRS Publication 15-8 identifies the following exempt vehicles:
• Clearly marked, through painted insignia or words, police, fire, and public safety vehicles.
The employee must be on-call, required to commute in the vehicle, and be prohibited from personal travel outside the jurisdiction.
• Unmarked vehicles used by law enforcement officers if the use is officially authorized.
The officer must be authorized to carry a firearm, execute search warrants and make arrests.
• An ambulance or hearse used for its specific purpose. • Any vehicle designed to carry cargo with a loaded gross vehicle weight over 14,000 pounds.
• Delivery trucks with seating for the driver only, or driver plus a folding jump seat. • A passenger bus with a capacity of at least 20 passengers used for its specific purpose. • School buses.
• Tractors and other special purpose farm vehicles.
• Bucket trucks, cement mixers, combines, cranes and derricks, dump trucks, flatbed trucks, forklifts, qualified moving vans, qualified specialized utility repair trucks, and refrigerated trucks.
• Pickup trucks with a loaded gross vehicle weight of 14,000 pounds or less is a qualified non-personal use vehicle if it has been specifically modified so it is not likely to be used more than minimally for personal purposes.
All other Emplover-Provided Vehicles (Non-exempt Vehicles) - Accerding to IRS guidelines and for For purposes of tax liability calculation only, all otherany City-owned vehicles that are not exempt under IRS Regulation 15-8 listed above and do not meet the criteria to be exempt vehicles are classified as "non-exempt." For employees who have been provided with a vehicle that does not meet the "qualified non-personal use (exempt vehicle)" criteria, the personal use of the vehicle is a taxable fringe benefit. This means that a tax liability will be incurred by the employee to whom the use of the vehicle is assigned.
Example: A City owned pickup truck has the name of the City marked on the vehicle. Usually the employee is allowed to take the vehicle home because he/she is "on call." The vehicle is not a qualified non-personal use vehicle, thus the commuting value is a non-cash taxable fringe benefit.
Example: An employee takes a City vehicle home in order to avoid exposing it to harm. The vehicle has a City seal on the door and is not to be used for personal use. If this is an infrequent occurrence (less than once a month this may be excludable as a de minimis fringe benefit. If this is a frequent or regular occurrence, the commuting may be valued using the commuting rule (see below) because there is a non-compensatory business purpose for the employee taking the vehicle home. If the vehicle is not a qualified non-personal use vehicle as discussed above, and the employee drives it home, there is a taxable commuting benefit.
2 Taxation on City Vehicles used by City Employees - Section LI Eringe benefit valuation rules for take-home vehicles - In the absence of a vehicle's qualification as a non-personal use vehicle, there are three methods that can be used in compliance with IRS regulations, to value the personal use (including commuting) of the employer-owned vehicle provided to the employee for income and FICA tax purposes: 1) Cents- Per-Mile rule, 2) Commuting Rule and 3) Lease Value Rule. The following valuation methods are in summary format, the City will adhere to the valuation rules as described in the IRS publications. The valuation rules for take-home vehicles are summarized below:
1) Cents-Per-Mile Rule:
Under the cents-per-mile rule, the value of the use of a vehicle is the then-current standard IRS mileage reimbursement rate (57.5 cents per mile in 2015) multiplied by the number of personal miles driven. For this rule to apply, vehicles must also meet the annual mileage requirement of 10,000 miles and cannot exceed the maximum automobile value as set forth in IRS Regulation 15-B (for 2024, a vehicle's value in the first year of employee use cannot exceed $62,000). However, this rule is not available for a car if its fair market value in the first year of use by the employee in 2014 exceeds $16,000 and for a truck or van if its value exceeds
$17,300. It also must be driven at least 10,000 miles during the year. If either the mileage requirement or the value limitation is not satisfied, the annual lease value described below would need to be used.
2) Commuting Value Rule:
If the City provides a vehicle to an employee and prohibits personal use of it except for commuting to and from work, the employee is taxed on the commuting use at a rate of $1.50 per one-way commute. To qualify for this alternative, the City must have a written policy prohibiting personal use other than for commuting and "de minimius" personal use (such as a stop for a personal errand on the way between a business delivery and the employee's home). It is also necessary that the employee be required for "bona fide non- compensatory reasons" to travel to and from work in the vehicle. Being on call or standby would be such a reason. Finally, the employee may not be an elected official of the City or an employee whose annual pay is at least Federal Government Executive Level V ($148,700 for 2015)-or more.
3) Lease Value Rule:
This method is used if neither of the rules (1) or (2) above is applicable. If the City provides a vehicle to an employee which is generally available to him or her,_-and is subject to personal use in addition to commuting, the employee must be subject to taxation on the personal use. This requires that the personal and business use be substantiated (presumably through a daily log). It calculates the value of the benefit by determining the annual lease value of the vehicle as follows:
a. Determine the fair market value of the vehicle when first made available. b. Determine the annual lease value (ALV) from the table in IRS Publication 15-B, which is based on a four-year lease term. This value will generally stay the same for each year. If the vehicle remains in service after four years, it must be revalued and the ALV recomputed.
Multiply the annual lease value by the percentage of personal miles out of the total miles driven by the employee.
d. If you provide fuel, you must add its fair market value_or 5.5 cents per mile for all miles driven by the employee. to the lease amount; you may use 5.5 cents per mile for this purpose. This is the value of the taxable benefit. 3 POLICY PROCEDURES:
1. Department Heads will complete and submit the "Take-Home Vehicle Assignment Authorization Request 'form for approval by the City Administrator or designee. This request will be reviewed annually by July 1st by the Department Head and Taxation on City Vehicles used by City Employees - Section I. I resubmitted to the City Administrator for approval. Department Heads are responsible for initiating the annual re-approval process. This request will be accompanied by an acknowledgement form signed by the employee acknowledging having read and received this policy. Take-home vehicle assignment requests by the City Administrator or City Attorney must be authorized by City Council.
After obtaining approval from the City Administrator, the Department Head will forward the approved "Take-Home Vehicle Assignment Authorization Request" form to the City's Finance Department, Payroll Division. The Finance Department will be the primary repository for the approved "Take-Home Vehicle Assignment Authorization Request forms. The Finance Department will not maintain documents for police undercover vehicles. For security purposes, all records for police undercover vehicles will be maintained in the Police Department following approval by the City Administrator or designee.
3.2. Department Heads are responsible for notifying the Finance Department in writing at least five days prior to the end of the pay period if there are any changes to the status of an employee's assignment of a take-home vehicle.
4.3. Once an on-call assignment has been approved by the City Administrator or designee, new requests are only necessary when changes in status (new employee, reassignment of duties, employee transfers, etc.) occur as part of the annual review.
5.4. Departments will be responsible for submitting the approved "Vehicle Take- Home Trip Log" forms to the Finance Department, Payroll Division no later than five working days after the end of each month, so that auto fringe benefit withholdings required by the IRS can be applied to the salary of the employee receiving the benefit.
6.5. City Administration will conduct an annual review of take-home vehicle assignments to ensure that they continue to meet the needs and best interest of the City.
FINANCE DEPARTMENT'S RESPONSBILITIES:
Fringe benefits are considered to be a form of pay, so the fair market value of such benefits must be included in the employee's wages unless specifically excluded by federal tax rules.
The Finance Department shall be responsible for:
1. Determining the appropriate valuation method to be used to calculate the value of each City employee's taxable benefit based on the careful assessment of the approved "Take-Home Vehicle Assignment Authorization Request" form.
2. Input commute trip data into the payroll system for auto fringe benefit withholding.
3. Update auto fringe benefit data in the payroll system.
EMPLOYEE RESPONSIBILITIES:
1. Employees who fail to comply with the requirements of this policy may be subject to disciplinary action according to appropriate City disciplinary procedures.
2. Where employees do not have valid authorization for use of a take-home vehicle in compliance with the above procedures, or during unforeseen emergency situations, such taxable value may be based on one of the valuation methods described above.
The fair market value of fuel may also be taxable if a City credit card is used or the employee uses fuel owned by the City for those employees with unauthorized take- home vehicles.
3. For those employees with unauthorized take-home vehicle assignments that are not in compliance with the above procedures, in the event that the City failed to identify Taxation on City Vehicles used by City Employees - Section 1.1 the appropriate taxable amount and the City is liable for the employee's portion of the payroll taxes, the City shall have the right to deduct such payroll taxes from any future salary payments to the employee. Where the employee is no longer employed by the City, the City has the right to pursue any means necessary to recover payroll taxes paid on behalf of the employee.
4. This policy shall comply with all federal laws and regulations applicable to any aspect of this policy.
5. If the assigned vehicle is non-exempt as described above, the employee to whom it is assigned will incur the tax liability described above. That employee will be responsible for completing a new W-4 to adjust withholdings for this liability, if necessary.
6. Employees will be required to complete the daily "Vehicle Take-Home Trip Log" form for the non-exempt City vehicle and submit for the appropriate approval by the Department Head.
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