City Of Reading Hires Montgomery County Firm For Payroll

At Mayor Vaughn D. Spencer’s request, City Council on Monday awarded data processing giant ADP a $214,100 contract to take over the city’s payroll operations.

The move will get rid of an error-prone, in-house system for which the IRS has fined the city more than $100,000.

“We’re not payroll experts; we’re getting out of the business,” said Christopher Zale, acting director of administrative services.

The IRS fines¬†– $50,400 each for tax years 2007 and 2008 because the city’s W-2 forms weren’t compatible with IRS computers, and weren’t re-filed properly until months after the deadline – were levied in 2010.

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