The policy on payroll reporting deadlines and late penalties that were distributed in March 1999 always seemed a bit confusing to me. In a March 8, 2000 memo to Marian Frane (the Finance Director), I proposed some changes. She did not respond. 

On July 12, 2001 Marian sent me this e-mail: 

I have received several phone calls from municipalities that have spoken with you about the payroll reporting timelines.  They are surprised when they receive a late payment letter from me because you have told them they are meeting the reporting deadline.  Please mention to them that while they may satisfy the reporting grace period (10 days after the 10th of the month), the payment deadline is the 20th with a 15 day grace, regardless of when we receive the report. 

Also, the municipalities are telling me you are telling them that the reporting deadline is the 20th.  Please make it clear to them that the deadline is the 10th. 

Apparently, when the municipality sent the report on the 20^th, it was more than 15 days by the time they got the invoice and returned the payment. 

Ordinarily I have no reason to discuss deadlines when I talk to customers, but a couple days before the 20^th each month, I call everyone who has not yet sent their report. That was when I was telling them the deadline was the 20^th, and that they could be fined $250 if they are late. 

Later on July 12, Marian later asked if we were OK on this matter. I told her I had looked up “deadline” in the dictionary and found that its source was the prisons. A line was drawn around the prison yard, and if a prisoner crossed it, he was shot. “Deadline” implied consequences, and there were no consequences for being later than the 10^th. But I agreed to follow her directive. 

Later, I sent her this e-mail, with copies to Ron Beaton and Tama Allen (Ron and Tama have to pre-approve any of my correspondence with customers): 

There has been some concern about what I am telling municipalities about deadlines for payroll reports. We can clarify the matter for the 150 muncipalities who are sending their reports via e-mail by including a statement of the policy in the standard reply. With your approval, I can begin replying to e-mailed reports as in the attached document. Also, we could put the same information in a form letter and mail it to all the municipalities who submit reports on diskettes or transmit them to our Bulletin Board. Or maybe just to those whose reports are arriving after the 10th. 

Marian responded to my e-mail as follows: 

NO!  The municipalities have received copies of our procedure for late reporting and payments.  We need to stop giving them incorrect information over the phone. 

I did get permission soon after that to send this e-mail message to municipalities who were late with their report: 

Just a reminder that your July payroll report was due August 10 and the grace period ends Monday, August 20. 

If you need help or have questions, e-mail me or call me at 800-767-6377. 

On August 9, Marian sent me this e-mail: 

I just received a phone call from the Mid-Michigan Dist Health Dept (5901) responding to the late payment letter I sent to her.  She said she had spoken with you about paying her June invoice late because she had to submit a corrected report.  She said you told her that she would not be charged a late payment penalty because she submitted a corrected report.  That is not so! 

I replied: 

She misunderstood. I told her that she would not be penalized for being late with her corrected report. I did not tell her that she would not be penalized for being late with the payment. 

The issue came up again in an otherwise favorable annual performance review written by supervisor Ron Beaton in October 2001. This statement was included in the review: 

One area of concern has been information Steve has been providing to municipalities. Marian Frane has copied me in two circumstances that indicate information that does not conform to current policy has been provided to municipalities. Steve needs to keep comments in conformance with MERS policy. 

Marian “resigned” on November 26 and the new Wage and Service Reporting Instructions manual was distributed at the end of December with the “current policy” on deadlines and penalties.