Twinsburg Council Tackles Overtime Tax Rules, Political Sign Law and a Library Farewell

Twinsburg City Council packed a full evening into its Oct. 27 Finance Committee, caucus and regular meetings at the Twinsburg Government Center. Finance Director Christina Conway explained why the federal no tax on overtime deduction has turned city payroll into a manual job. Council also heard a challenge to the city’s political sign rules and honored retiring library director Laura Leonard. Five pieces of legislation moved forward, and city staff shared news on new businesses and downtown property sales. No Tax on Overtime Sends City Payroll Back to Spreadsheets Conway gave the Finance Committee an overview of the One Big Beautiful Bill Act. She said the federal law was signed in mid 2025 and includes the deduction known as no tax on overtime. Employers faced no penalty last year for leaving overtime off employee W2 forms. That grace period is over. Employers must report qualified overtime on 2026 W2 forms in Box 12, and missing it can bring a penalty of up to $680 per return. The city’s payroll software cannot separate the overtime that qualifies under federal rules. Staff are calculating each employee’s figure by hand in separate Excel sheets, one pay period at a time. Conway said the fire department alone took her a full 40 hour week. Other cities she has talked with are handling it the same way. Individual filers can deduct up to $12,500 in qualified overtime, and joint filers up to $25,000. The benefit phases out above $150,000 for individuals and $300,000 for joint filers. Conway noted the deduction expires in 2028. Why Police and Firefighters Will See Smaller Deductions Only hours actually worked count under the Fair Labor Standards Act. Vacation, holiday and personal time do not, even though city contracts treat them as time worked. When an employee uses paid leave, some overtime hours get counted as regular hours instead. Police and fire use a special 14 day work period. Federal rules start qualified overtime after 106 hours for firefighters and 86 hours for police. Union contracts set lower thresholds of 96 and 80 hours. In one example, a firefighter earning $30 an hour worked 120 hours in a pay period. That left 14 hours of qualified overtime and a $210 deduction, since only the half time portion counts. A second firefighter used 24 holiday hours and worked 36 overtime hours. Only 12 of those overtime hours would qualify. Holiday overtime paid at 2.25 times the regular rate is treated as a city premium. Only the standard half time portion counts toward the deduction. Comp time adds another layer, and Conway said she learned how to handle it only a month ago. She expects confused or unhappy employees when they see lower figures than last year. The IRS still has not answered some questions. One is what employers should report when an employee’s overtime tops the $12,500 cap. Most city overtime falls in police and fire, with some service and summer parks staff. Councilman Chuck Bonacci asked whether the change affects city income tax revenue. Conway said it does not. The deduction only shows up when individuals file their own taxes. Councilman David Post called it disappointing that cities nationwide must do this without guidance. Budget Hearings Set for November and December Conway proposed three budget hearings on Nov. 10, Nov. 24 and Dec. 8, all at 6 p.m. She said she would confirm the dates with Clerk of Council Shannon Collins. Councilman Bill Furey chaired the committee. He said council typically passes the budget as an emergency at its final meeting of the year, the second Tuesday in December. Library Director Laura Leonard Honored After 29 Years Leonard spoke at caucus and thanked city departments for years of support, from police to service crews hanging banners. Mayor Sam Scaffidi later presented her with a proclamation. It recognized 29 years at the Twinsburg Public Library, including 18 as director. The proclamation credited her with library renovations and programs such as Coffee with a Cause, Open Mic Night and Teen Summer Plays. It also noted the bookmobile’s visits to parades and local events. Leonard’s last official day is Friday, Oct. 30. Leonard said leading her hometown library meant she had to try harder. She told council she hoped residents feel the library belongs to them, since she was only its steward. New director Kimberlee DeNero-Ackroyd is in her fourth week. She has worked in public libraries for more than 30 years. Most recently she spent nearly 15 years as deputy director of the Cleveland Heights-University Heights Public Library. Rebecca Ziegler of the city’s economic development department said Leonard will serve on the city’s Records Retention Committee. Bonacci recalled a library staff training day on poverty and praised the library’s social services work. Scaffidi attended the library’s Sunday open house for Leonard, which included a petting zoo. He said he took the animal vendor’s card and would like to bring them to a future city event. Council Seeks Updates o