The city of Wabasso and accounting firm Kinner and Company are continuing to work on a solution to a payroll error.

While preparing for the cities audit in May it was discovered that when new software was installed in 2010, it was not set up properly to with hold social security and Medicare contributions for full time employees. The error resulted in not enough being taken out of payroll checks.

Kinner and Company reports that the error was nothing fraudulent but caused from a software change.

Fulltime employees will have to payback the amount owed to social security and Medicare, the city will have to pay the additional amount for their employees share and employees may have to submit an amended individual income tax return.

The under withholdings occurred over a 16 month period.

Currently the city is working with the auditor to determine options for repayments and amounts owed.