Title
a. Authorize and approve the increase in appropriations of the Auditor-Controller’s Fiscal Year (FY) 2025-26 Budget in Fund 001, Appropriation Unit AUD001 by $1,700,000, financed by a release of $1,700,000 from the Compensated Absences Assignment account 001-3115; and
b. Authorize the Auditor-Controller to amend the Auditor-Controller’s Fiscal Year (FY) 2025-26 Budget in Fund 001, Appropriation Unit AUD001 by $1,700,000, financed by a release of $1,700,000 from the Compensated Absences Assignment account 001-3115.
Report
RECOMMENDATION:
It is recommended that the Board of Supervisors:
a) Authorize and approve the increase in appropriations of the Auditor-Controller’s Fiscal Year (FY) 2025-26 Budget in Fund 001, Appropriation Unit AUD001 by $1,700,000, financed by a release of $1,700,000 from the Compensated Absences Assignment account 001-3115; and
b) Authorize the Auditor-Controller to amend the Auditor-Controller’s Fiscal Year (FY) 2025-26 Budget in Fund 001, Appropriation Unit AUD001 by $1,700,000, financed by a release of $1,700,000 from the Compensated Absences Assignment account 001-3115.
SUMMARY:
This request is to cover the recently identified error in State Disability Insurance (SDI) tax calculations, where the 457(b) deferred compensation and CalPERS retirement contributions were inadvertently excluded from taxable wages in calculating SDI tax. This resulted in an estimated under-withheld tax liability of $1,200,000 from approximately 6,500 employees during the period of October 2022 through June 2025. The under-withheld tax is expected to incur approximately $180,000 in penalties and $98,000 in interest.
On October 14, 2025, the Board of Supervisors authorized remittance of $1.7 million to the State of California Employment Development Department (EDD) for SDI tax under-withholding, including a late payment penalty and interest, for payroll tax returns filed after October 31, 2022, without reco...
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