Taxpayers in Baltimore are facing a hefty $534,000 cost to rectify significant errors in employee payroll deductions, according to a report released on Wednesday by the city’s auditor. The report unveiled “significant errors in retroactive payment calculations” that improperly deducted contributions from as many as 12,000 employee paychecks.

The city’s new paperless payroll system, implemented four years ago, has been the subject of numerous complaints since its launch. The auditor’s findings closely mirror the conclusions of an Inspector General’s investigation released last year, which pointed to staffing shortages as the root cause of the overpayments.

In a previous statement, Finance Director Michael Moiseyev acknowledged the issue, writing, “At the time, Payroll had only one full-time employee, supported by a team of contractors who lacked specific detailed knowledge of the City of Baltimore payroll configurations.”

Despite the significant overpayments, the city has confirmed that it will not seek reimbursement from the affected employees. Instead, Baltimore will bear the $534,000 cost itself, effectively passing the burden on to taxpayers.

The payroll debacle highlights the ongoing challenges faced by the city in managing its administrative systems and processes, underscoring the need for robust oversight and adequate staffing to prevent such costly errors from occurring.

As the city grapples with the financial implications of the payroll mishap, questions are likely to arise regarding the accountability measures in place and the steps being taken to prevent similar incidents in the future, ensuring the responsible management of public