It looks like the Town of Front Royal’s interim manager may get an extension to his employment contract, which expires today, the final day of the Town’s fiscal year.
Town council members will hold a special meeting at 7 PM tonight at the Warren County Government Center, to consider a contract to extend Tederick’s post.
Matthew Tederick began working as the interim town manager on Nov. 9, 2019, after the council approved a contract by a 5-1 vote with Councilman Eugene Tewalt dissenting.
Tederick has earned a $12,500 monthly salary and a $300 monthly car allowance, while working on a contractual basis. His contract came under public scrutiny when it was learned that the contract stated Tederick “may transfer and assign this Agreement to Manager’s wholly-owned limited liability company (LLC), which transfer and assignment shall not relieve in any manner the personal duties, obligations and responsibilities of Manager.”
Some citizens have questioned whether Tederick should have been classified as an employee, rather than a contractor. The state corporation commission’s database lists Tederick as the registered agent of a number of LLCs.
A source close to the negotiation indicated that the new contract could name Tederick as an employee, rather than having him continue as a contractor. If that happens, at the same rate of pay, taxpayers would pony up even more to offset payroll taxes.
According to the IRS website, employers and employees both contribute to FICA taxes, each paying half. Social Security is 12.4% and Medicare is 2.9% for a total of 15.3% as of 2020. That means that Tederick would be responsible for contributing 7.65% of his salary; the taxpayers would then be on the hook for the remaining 7.65%.
According to a June 29 Town of Front Royal website posting, there will be a second council meeting this week, on July 2, for “the purpose of consideration or interviews of prospective candidates for employment with the Town.”
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