Firefighters benefit from city's payroll error

A simple computing error has cost the city of McKinney, Texas, $3.5 million since 2005, the McKinney Courier-Gazette reports. A third party analysis of the city's payroll revealed that the city's firefighters were paid an additional nine hours of work for every 21-day payroll shift.

The city's payroll system was audited by a third party under the Fair Labor Standards Act, and now city officials are examining what can be done to correct the error.

"We gave them a copy of the audit and they sent it to their union attorneys," McKinney deputy city manager Jim Parrish told the paper. "Then we worked with the firefighters association and the firefighters about what we could do to make the error right, correct it and move forward."

A payroll error has resulted in the opposite effect in Natick, Massachusetts. According to the MetroWest Daily News, city managers did not properly deduct healthcare benefits from their payroll reporting, resulting in more than 12 years of significant and unnecessary payments to the Internal Revenue Service.

Both cities, which relied on regular payroll systems, could have avoided these mishaps by using a credible outsourced payroll processing vendor.

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