Payroll Auditing: Using a Pre-Audit Questionnaire

Posting by Phil Vivirito

To prepare for the payroll audit, a brief list of questions may be e-mailed, faxed, or mailed to the employer. The auditor usually informs the employer when scheduling the audit and requests that the employer e-mail or fax back the completed questionnaire. This pre-audit questionnaire contains questions that would be common for any audit, such as: how many people are on the payroll, and has the same person been preparing the remittance reports for the entire […]

Current Employer Contribution Issues

Posting by Larry Beebe, CPA

There were two cases reported in the IFEBP’s June 2008 Legal Legislative Reporter dealing with employer contribution issues.  In one case, the court ordered a company to make contributions on behalf non-union employees.  The work was covered by a Project Stabilization Agreement (PSA) and the courts ruled that workers covered by the PSA had to be reported even if they were non-union employees.

The second case involved a trust agreement which calls for the discretionary imposition […]

Clarify contract language for better collective bargaining agreements, better payroll auditing

Posting by Ron Chandler, CPA

From time to time, we find that the collective bargaining agreements we audit are deficient as to defining or explaining specifically how, when or which hours or other methods of contribution are to be made for health and welfare and pension benefits.  Several years ago, we made some Local Unions aware of these deficiencies, and found that subsequent agreements had specific language clearing up any ambiguities from the prior contract.

Lesson learned:  Do not hesitate to recommend to […]

A Variation to a Three Year Audit Cycle

Posting by Phil Vivirito

Many plans have payroll audit cycles.  The most popular is the three year cycle in which each employer is audited once every three years.  As the cycle goes on, some employers may have audit findings every three years, and some may be in compliance for six or even nine years.  At the point of the third or fourth cycle, it may be time for a variation on the three year cycle.  Employers that have been in […]

Contributions Paid to the Fund

Posting by Ron Chandler, CPA

When contributions paid to the Fund are based on hours worked or paid for (or some variance there of), we always include a procedure where we test one to three employees for the entire year to make sure there are no missing weeks.  The omission of weeks, pay-periods or sometimes several days or holidays in a payroll cycle is a very common error.  This procedure has allowed us to find thousands of dollars for our […]

Payroll Audits, Compliance Auditing, Payroll Auditing Articles

Articles

In order to promote best practices in payroll auditing, we aim to provide articles and other resources that give real-life examples and explain current practices in detail.  We always welcome requests for information regarding specific topics.

Payroll Audit History Analysis – By Needles & Associates
Payroll Auditors as Witnesses – Fund Counsel’s Perspective – By Andrew Staab
Payroll Auditors as Witnesses – Fund Counsel’s Perspective Part 2 – By Andrew Staab
Payroll Auditors as Witnesses – Fund Counsel’s Perspective […]

Payroll Audit History Analysis

Posting by Kurt Needles, CPA

I summarized the payroll audits that our firm performed during the years 2001-2005. The analysis can be found on this Web site in the Articles section. I separated the audits into two categories: routine audits, and audits of employers who were delinquent. I believe that the figures presented in this report show that a payroll audit program can be financially successful – even for routine audits. Has your experience been similar? Let us know!