Mercer County commissioners confront payroll software failures and retirement remittance gaps; auditors engaged

Mercer County commissioners spent the meeting addressing persistent payroll and benefits-disbursement problems following a recent switch to new payroll software and asked external auditors to prioritize correcting employee pay and retirement remittances.

The discussion centered on errors in transmittals and personnel accruals after the Tyler software rollout, delayed or missed contributions to employee retirement accounts at Nationwide, and the county auditor's plan to contract Eide Bailly to complete a prioritized reconstruction and reconciliation of payroll disbursements. Commissioners emphasized speed and transparency to minimize additional financial harm to employees.

Why it matters: several employees have experienced incorrect payroll withholdings or delayed retirement contributions; the county's auditors and staff told commissioners those issues carry interest and reputational costs to employees and the county and must be addressed before broader system cleanups. The courthouse's payroll and human-resources functions were described at the meeting as a priority problem needing immediate remediation.

Details of the problems and next steps - Carmen (County Auditor/Payroll lead) briefed commissioners that routine pay adjustments and retroactive corrections would be made and that department heads would be asked to verify transmittals; she said Eide Bailly will focus first on ensuring accurate cash disbursement so employees receive correct net pay and retirement contributions. - Commissioners and staff reported that some Nationwide retirement contributions recorded from employee paychecks had not been transmitted since January; one employee reportedly paid a personal check to cover a missed contribution and later received an overpayment check back, illustrating the operational failures described. - The county auditor agreed to notify affected employees with individualized letters explaining adjustments, when they occurred and why, and to provide a compiled timeline of corrections once Eide Bailly has finished the prioritized disbursement work. - Commissioners instructed the auditor's office to confirm who has access to the county's Nationwide accounts; staff said three named county representatives currently have access (the auditor and two other officials) and that access controls will be checked.

Audit work and a formal change order - The commission approved a change order to the 2023 state audit that will have auditors on site rather than relying solely on remote work; the on-site work was discussed as a necessary step to let auditors review records in person. At the meeting the figure cited for the change order was $39,000. - Eide Bailly (engaged as contractors to assist with payroll remediation and reconciliation) will prioritize payroll disbursements, reconstruct accruals and other records after disbursement corrections, and produce a timeline commissioners can review.

County direction and accountability Commissioners repeatedly urged the auditor's office and the contracted auditors to move quickly and to communicate clearly with employees and department heads about what corrections were made and why. Commissioners described the situation as a high-priority operational and reputational risk and asked for regular updates until the issues are resolved.

What the meeting did not decide The commission did not adopt any permanent procedural changes to payroll governance at the meeting; instead it directed staff to complete the immediate remediation work and return with recommended policy or process changes.

Ending note County staff said they will provide written, employee-level notices about any payroll adjustments and a compiled report of all corrections after auditors complete the prioritized disbursement work.