Common Contracts
1 similar Side Letter Agreement contracts
SIDE LETTER AGREEMENTSide Letter Agreement • December 6th, 2021
On April 30, 2021, the City of Milpitas, hereinafter referred to as the City, and the Milpitas Police Officers Association (“Association”), collectively referred to as (the Parties) entered into a Side Letter Agreement regarding the change to the vacation cash out election language in the MOU. This change involving the constructive receipt doctrine (codified in Section 451 of the Internal Revenue Code) also applies to Sick Leave. The IRS views an employee’s choice whether to cash out sick leave within the same year as it is earned as “constructive receipt” as the IRS essentially prohibits an employee from having a choice whether or not to receive taxable wages/income in a different year outside of certain specific circumstances and programs.
