County staff report $117,000 workers’ comp audit shortfall after payroll increases

County staff reported that the 2024–25 workers’ compensation audit found audited payroll of about $37.35 million, compared with the $31.07 million estimate submitted, which produced an additional approximately $117,000 workers’ compensation liability for the county.

Officials said the variance stems from pay increases, additional staffing and other operational factors tied to a Baker Tilly compensation study and council-approved pay adjustments. Staff explained they had paid the insurance but lacked funds to cover the audit adjustment and therefore requested council support to reconcile the audit difference.

Commissioners and council members discussed the audit and noted such an audit result is expected when payroll increases significantly; one commissioner said the outcome is “almost a guarantee” after large pay adjustments. Staff indicated they expect similar audit adjustments next year given recent salary increases.

Next steps: Council will consider appropriation options during the upcoming budget hearings.