Seattle Grapples with Payroll Errors Following Workday Implementation

The City of Seattle is facing significant challenges with its newly implemented payroll software, Workday, as employees report widespread issues concerning payroll errors, unprocessed retirement contributions, and incorrect leave records. These problems emerged shortly after the city transitioned its over 13,000 employees from an outdated system to Workday on September 3.

City officials have acknowledged the difficulties. Julie Johnson, Chief of Staff and Communications Director for the Office of City Finance, confirmed in an email that they were working to resolve these issues but noted that discrepancies were expected given the scale of the transition. “While we have had a less than 1% error rate across the last few payrolls for more than 13,000 employees, we acknowledge challenges remain,” Johnson stated.

However, anonymous reports from city employees suggest that the error rate could be far higher than the official statements indicate. Workers have encountered missing payments to retirement accounts managed by Nationwide Retirement Solutions, missing vacation hours, and paychecks that do not reflect the actual hours worked. According to one city employee, these problems have persisted over multiple pay periods.

In light of these issues, the city has formed an interdepartmental team comprising members from human resources, payroll, information technology departments, and the Mayor's Office to collaborate with Workday in resolving the problems.

Compounding the situation, some city employees reported receiving paychecks for significantly less than their due wages, with some reportedly being as low as three cents for a two-week pay period. These discrepancies have left many employees frustrated and struggling to manage their financial obligations, prompting several to contact the U.S. Department of Labor.

Seattle’s police officers and other affected workers have expressed concerns about disrupted deferred compensation programs and inaccuracies in overtime payments. Some police officers revealed receiving only half of their take-home pay in recent cycles.

The city has faced similar challenges experienced by other institutions that implemented Workday, such as the University of Washington and Los Angeles, where errors led to delayed payments and ongoing payroll issues.

Meanwhile, city unions have been vocal about the inadequate communication from city officials. The International Brotherhood of Electrical Workers Local 77 highlighted that the delays and unresolved errors have affected wage increases and retroactive payments that were part of recently ratified labor agreements.

Seattle continues to address these implementation issues while preparing for the upcoming payroll deadline on October 18, pledging to rectify errors swiftly to mitigate further inconvenience to employees. The process of rectifying these errors includes providing additional training and resources to acclimate employees to the new system and improve payroll accuracy.