Why We Don’t Do Payroll Audits – Reason 4

Posting by Larry Beebe, CPA

“The Union Business Representatives Police all of the Jobs”

The union business representative in a given local union’s jurisdiction may be doing an excellent job at policing the jobs.  But the business representative’s primary job is to represent the union members working on the job.  The business representative is there to listen to the union member and insure that the member is properly represented in dealings with the employer signed to the collective bargaining agreement (CBA).

The business representative should also insure that dies are properly paid on union members.  The business representative may also believe that his or her hob is to insure that remittances are properly filed for the fringe benefit plans.  This responsibility is secondary to the responsibility to the union and some business representatives do a better job than others do in handing this responsibility.

A business representative has no responsibility to the non-union member who may be working in a job description covered by the CBA.  Unfortunately, there may be some employers who successfully hide certain job sites and employees from the business representative.  There may also be instances where the business representative is not doing his or her job.

Relying on the business agent is not a valid reason for failing to do payroll audits.

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