RSS botches tax withholding on teacher supplements and summer contracts – Reuters
SALISBURY — Rowan-Salisbury Schools sent emails to staff on Wednesday saying there were errors withholding tax from recent payments, primarily to teachers.
The email from new chief financial officer Faith Lambeth says “little to no” federal or state taxes were withheld from the district’s June 22 payroll.
June is a unique month in the district payroll because it only includes annual teacher supplements, a low-wealth supplement paid to teachers that is allocated by the state, and summer employment contracts.
The message says the error was detected “immediately” and that the district plans to withhold the amount to make up the difference between the August and December paychecks. Acting Superintendent Jason Gardner confirmed the details in the emailed message to the Post.
The post claims the issue is software-related and indicates that the district has begun work to “modernize” its financial and human resources systems funded by a grant the district received in December 2020. The post indicates the modernization process causing payroll issues across the state. and notes that the North Carolina Department of Public Instruction has suspended the process due to software issues.
The grant specified a switch to Tyler Technologies software. An NCDPI spokesperson told the Post that the department paused the implementation of Tyler and Cherry Road Technologies due to “payroll, accounts payable and hiring issues in the two districts that were commissioned,” and the pause gave vendors time to resolve issues. .
The break was lifted on June 17. The NCDPI told the Post that Rowan-Salisbury Schools was not one of two “inline” districts.
“Rowan-Salisbury Schools intends to move forward with modernization as we recognize that our current software has limitations,” the email from Lambeth read. “Yet we want to do it in a way that limits disruption to our employees. Unfortunately, this is not a quick process for any school district, so we ask for your patience as we work through this endeavor.
The email ends by telling the staff that they have no action to take.
This is the latest payroll woe for the district. On June 2, the Post reported that the district failed to properly withhold taxes from some employees between January 2021 and April 2022, resulting in some employees paying thousands of dollars in tax bills.
The district hired a financial consultant following the issue and messaged employees telling them it was confident the issue had been resolved for “your May 2022 paychecks and moving forward.”
In April, the district hired a slate of new finance department leaders, including Lambeth and new payroll director Kim Saunders.