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May 21, 2022

DuPage Township Votes To Ignore IRS Rules and State Law –

By John Kraft & Kirk Allen

On March 22, 2021

DuPage Township, IL. (ECWd) –

DuPage Township Supervisor Felix George, and Trustees Maripat Oliver and Ken Burgess, voted at their last township meeting to ignore IRS rules and state law as it relates to former Supervisor Mayer’s W-2 tax form – obviously forgetting that no local government can override IRS rules or state law.

The W-2 at issue involves the reporting of alleged “pre-tax” payments for health insurance for former Supervisor Bill Mayer.

So here are the questions we will answer one at a time:

  • What did the compensation-setting Resolution authorize as compensation for the township supervisor?
  • Was Bill Mayer authorized to participate in DuPage Township health insurance plans at the start of this term of office?
  • What change was made to the Employee Handbook and when was that change made?
  • Can insurance be added to an elected official’s compensation package during the term of office?
  • What about the IRS rules on “pre-tax” health insurance – Does it apply to “employer-sponsored” insurance, or can a person simply purchase their own health insurance and write it off as “pre-tax”?

What did the compensation-setting Resolution authorize as compensation for the township supervisor?

August 23, 2016, is the date where Resolution 16-03 is passed setting the compensation of DuPage Township Officials for the four-year term beginning May 20, 2017, and it is abundantly clear:

  • Supervisor’s salary: $29,000
  • Assessor’s salary: $90,000 with various increases each year
  • ASSESSOR WILL RECEIVE INSURANCE BENEFITS
  • No mention of insurance benefits for the Supervisor

Was Bill Mayer authorized to participate in DuPage Township health insurance plans at the start of this term of office?

No, he was not authorized to participate in the township’s health insurance plan (See Resolution 16-3) when he started this term of office – as evidenced in the alleged change of the employee manual in January of 2018 (during his term of office).

What change was made to the Employee Handbook and when was that change made?

During the January 2018 township board meeting, the board voted on a new (change) policy manual. This change included a clause allowing elected officials and family members to participate in the health insurance program at their own cost.

The following month, Mayer added himself and family members to the township’s insurance plan (here).

Even if that clause was in the handbook prior to his term of office (which it wasn’t), it was not included in the compensation setting resolution, therefore, it was unauthorized.

Can insurance be added to an elected official’s compensation package during the term of office?

No, an elected official’s compensation cannot be increased or decreased during their term of office (IL Constitution, Art VII, Section 9(b)). Adding anything (like insurance) to the compensation (salary) of an elected official during their term of office is unlawful.

Some people might say “but he paid for it out of his own pocket” and we would reply that the fact that he participated in the insurance program constituted an increase in compensation – no matter who paid the premiums – because it was not set as part of his compensation in the compensation setting resolution. Could the general public participate in the township’s insurance? Could the general public participate and claim pre-tax insurance payments? The answer to both is “no.”

What about the IRS rules on “pre-tax” health insurance – Does it apply to “employer sponsored” insurance, or can a person simply purchase their own health insurance and write it off as “pre-tax”?

Employer-sponsored” health insurance can be considered “pre-tax” – meaning not taxable as income. The KEY and operative words here are “employer sponsored” – and in order to be employer sponsored, the employee’s participation  must be authorized by the employer to be legally eligible to participate in the insurance program. Bill Mayer was not legally eligible to participate – the only elected official eligible to participate was the Township Assessor (See Resolution 16-3) – any “policy” change is moot and invalid when involving elected officials and their family members.

We understand the IRS has been notified of this and are awaiting their response.

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5 Comments
  • Sarah
    Posted at 12:58h, 22 March

    Since when are “rules” equivalent to “laws”? Did you forget the Federal Reserve is a private institution? Since when do private institutions control local governments?

    • John Kraft
      Posted at 13:37h, 22 March

      Don’t pay your taxes and see what happens. In this case, existing state law made him ineligible for township health insurance, which, in turn, made him ineligible for pre-tax health insurance payments.

      • Sarah
        Posted at 13:55h, 22 March

        Oh, I know exactly what will happen. We have devolved from a society that actually values laws to one that is ruled through by force from unelected bureaucrats. How progressive of us. And so DuPage is doing the right thing for the wrong reason. Wish more local governments would grow a pair say “(explicative deleted) off” to the federal government.

  • Dave
    Posted at 13:43h, 22 March

    Hahahahaha….. what arrogance. Hey township officials, do you remember that oath of office you swore to uphold. Remember swearing to uphold the constitution?

    Article XIII, Section three

    SECTION 3. OATH OR AFFIRMATION OF OFFICE
    Each prospective holder of a State office or other State
    position created by this Constitution, before taking office,
    shall take and subscribe to the following oath or
    affirmation:
    “I do solemnly swear (affirm) that I will support the Constitution of the United States, and the Constitution of the State of Illinois, and that I will faithfully discharge the duties of the office of …. to the best of my ability.” ~ (Source: Illinois Constitution.)

    § 55-10.  Oath or affirmation.  Every person elected or appointed to the office of supervisor, township clerk, assessor, trustee, commissioner of highways, township enforcement officer, or collector, before entering upon the duties of that office, shall take and subscribe, before any person authorized to administer an oath of office, the oath or affirmation of office prescribed by the Constitution. Within 8 days after the oath or affirmation is taken and subscribed, it shall be filed in the office of the township clerk or the clerk of the multi-township board, as the case may be, and the county clerk.

    • Say No to Bon Bon
      Posted at 02:31h, 25 March

      The Three Stooges took an oath to the former supervisor. They don’t care about the constitution. Self-greed and hatred has consumed them.

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