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Auditor-controller discloses SDI under-withholding from paychecks; county to prospectively correct and review prior records
Summary
Auditor-Controller Rupa Shah told the Board that system configuration errors caused incorrect state disability insurance (SDI) withholding for some employees; the county will correct withholding prospectively beginning with the July 3 payroll and perform a comprehensive review of historic pay events.
Auditor-Controller Rupa Shah told the Monterey County Board of Supervisors on July 1 that her office had identified an irregularity in how state disability insurance (SDI) tax was withheld from employee pay during a recent payroll-system transition.
The Auditor-Controller said a consultant's preliminary review flagged incorrect configuration logic that caused certain deductions (deferred compensation and CalPERS retirement cost) to be excluded from the SDI base. The county will implement a prospective correction to SDI withholding starting with the July 3, 2025 payroll;…
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