Yes, thank you very much that helps a lot. This particular local government is not covered by a retirement plan, so they are subject to FICA. Therefore, it appears that FICA will need to be paid on the employer contibutions.
Can a governmental employer contribute to an employee's 457 plan as long as the total combined contributions (salary reductions and employer contributions) do not exceed the annual limits ($15,500 if under 50)? If an employer can contribute, what is the tax treatment. Is it just not reported on the W-2 at all and taxable to the employee when distributions from the plan are made?