Stockton has paid more than $900,000 in penalties since 2023 after failing to make timely payroll tax payments and submit required reports, city officials said.
City officials said the problems began in January 2023 when Stockton transitioned from its former HTE payroll system to the Tyler MUNIS ERP system. The rollout was plagued with errors, including a failure to implement bi-weekly payroll as required under labor agreements, which left payroll processing incomplete and unresolved for months.
Human Resources Director Rosemary Rivas told councilmembers at a Feb. 18 Council Audit Committee meeting that the penalties were assessed on payroll obligations, including retirement reporting to the California Public Employees’ Retirement System and state and federal tax payments.
Costly penalties
Since 2023, the city has paid $181,027 in penalties related to CalPERS and state payroll taxes. Of that amount, about $1,200 was waived by CalPERS, Rivas said…