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 Auditing Stories and Tips

Posting by Larry Beebe, CPA

As we stated in the concluding chapter of our book, we would eventually like to publish a second edition. In order to do that, we need your tips and stories. Any advice you could give to payroll auditors and/or trustees, and any stories about what happened to you as a payroll auditor would be greatly appreciated. Please send them in reply to this blog posting, or you may e-mail them to andrews@bbcpa.com.

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 Audits | Union Payroll Auditing | Employer Payroll Auditing

 Editorial Board

Lawrence R. Beebe, CPA
Principal
Bond Beebe, Accountants & Advisors

For over 40 years, labor unions, employee benefit plans, not-for-profit organizations, construction companies, and law firms have benefited from Larry’s expert understanding of audit engagements, operational systems, computer systems, corporate and individual taxes, profit sharing plans, and pension plans. Through his integrity and experience, Larry has earned a reputation as being exceptionally adept in the auditing of labor organizations, Taft-Hartley employee benefit plans, and employer contributions to those plans. He is […]

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!

Participation Agreement Interpretation

Posting by Phil Vivirito

Situation: The participation agreement between the employer and the plan called for contributions to be made on behalf of each covered employee “up to 12 % of the employee’s yearly gross wages.” The employer considers zero percent to be part of the “up to 12%.” The plan’s payroll auditor is looking at it as if the employer is failing to make contributions and is prepared to assess the full 12% per employee. Who is correct?

Both interpretations […]

Considering the Family Medical Leave Act When Conducting Health & Welfare Fund Audits

Posting by Ron Chandler, CPA

The Family Medical Leave Act (FMLA) has been in existence since 1993. The Act affected health and welfare benefits and, therefore, how contributions were to be made to Health and Welfare Funds.

Our firm assisted and provided input to our Health and Welfare payroll audit clients in 1993 to show how contributions should be made in compliance with the FMLA, and thus the effect on payroll audits. We found that most of the new payroll audit […]