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Monterey County to remit up to $1.7 million to state for under‑withheld SDI taxes; board asks for funding options
Summary
Auditor‑Controller Rupa Shah told the board an accounting error left State Disability Insurance withholding underreported for Oct. 2022–June 2025. The board authorized remittance and directed staff to return with funding‑source options rather than recoup from employees.
The Monterey County Board of Supervisors authorized the county auditor‑controller to remit funds to the State Employment Development Department to correct an under‑withholding in State Disability Insurance (SDI) taxes and directed staff to return with options for where the payment should come from.
Auditor‑Controller Rupa Shah told the board her office located a configuration error in the county payroll system that omitted deferred compensation and CalPERS retirement contributions from SDI tax calculations. Shah said the county must amend quarterly returns for the period October 2022 through June 2025 and remit the state liability, including penalties and interest. "We are here seeking authorization for the auditor controller to remit up to $1,700,000 to the state for…
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