Where Is The Overtime?

Posting by Mary Stigge, CPA

I performed a payroll audit on a plumbing contractor and my review of three years of records showed no overtime hours being reported. However, the contractor advertised “24/7” service and a review of invoices to customers revealed emergency calls on holidays, nights and weekends. We found that overtime was being paid in cash and/or was being paid by an alter ego company who was not making benefit contributions.

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