State payroll errors raise concerns over retroactive payments

In a recent government meeting, officials discussed the complexities and challenges surrounding the calculation of retroactive pay for state employees, highlighting significant issues with manual processing methods. The meeting revealed that many agencies rely on outdated practices, with one agency, the Department of Public Safety, reportedly using handwritten notes to calculate payments for 633 employees. This reliance on manual calculations raises concerns about accuracy and the potential for errors in payroll processing.

Senator Kramer questioned the authority of an employee who independently processed payroll due to an inability to meet a five-day deadline, emphasizing the need for proper oversight in such decisions. The discussion underscored that while agencies have the ability to withhold approval of retroactive payments, many do not utilize this option, leading to complications such as overpayments and underpayments.

Miss Layson, a key speaker at the meeting, expressed ongoing concerns about the prevalence of errors in retroactive pay across state government, indicating that these issues are not isolated but rather systemic. The officials acknowledged the complicated nature of retroactive payments and urged agencies to seek guidance from the Minnesota Management and Budget (MMB) to improve accuracy and compliance in payroll processing.

The meeting concluded with a call for agencies to adopt more reliable technological solutions, such as spreadsheet software, to enhance the accuracy of payroll calculations and reduce the risk of errors that could affect state employees' compensation.