Posting by Larry Beebe, CPA
Are “No Shows” When the Auditor Arrives
When you arrive at the place (and time) of the scheduled payroll audit, you are informed that the person you are supposed to meet is not there, and no one knows where he/she is. You wait for a reasonable time, but the person is still absent. You should then ask to speak to the most senior person available at the employer and discuss the matter with them. You should […]
Posting by Larry Beebe, CPA
Calls and Cancels at the Last Minute
When an employer calls and cancels at the last minute, an immediate return phone call should be made advising the employer that considerable expense has already been incurred for the auditor. The auditor may already be on his or her way to the site of the audit. The payroll audit representative making the call should urge the employer to allow the audit it take place at the originally scheduled […]
Posting by Phil Vivirito
I went on an audit that looked like I was traveling to the middle of nowhere. My second flight segment was a prop plane that took me to an airport with six gates. I then had about a 45 minute drive to the audit site. For the last 15 miles of my drive the only things I passed were open fields, boarded – up gas stations and an occasional mobile home. At 11:15 a.m., I pulled […]
Posting by Larry Beebe, CPA
Calls and Attempts to Reschedule
Within the plan agreement and declaration of trust, there should be a provision dealing with payroll audits. This provision should discuss the records the employer should produce for the payroll auditor. The provision should also state that the employer has an obligation to allow a payroll audit to be performed and that once scheduled an employer cannot call at the last minute (except for a valid emergency) and attempt to reschedule […]
Posting by Kurt Needles, CPA
One recent payroll audit took us to the doorstep of one of our southern clients, in this instance to the residence of the company accountant. Every payroll auditor detests auditing in someone’s home – it is just uncomfortable. On this particular day I had to ring the bell several times before the door was answered. Apparently the accountant had forgotten about the audit appointment because he was still in his pajamas.
After throwing on a robe, […]
Posting by Larry Beebe, CPA
Tries to Schedule the Audit at an Inconvenient Time and/or Location
On Page 19 of our Payroll Auditing book we state that “the goal of the auditor’s representative is to schedule the audit at a date and time that is convenient to the payroll auditor”. The easiest way to do this is to select a date and time and communicate it to the employer in the initial correspondence between the payroll auditor and the employer.
The employer […]
Posting by Larry Beebe, CPA
Refused to Allow the Audit in the Time Period Selected by the Auditor
It is reasonable to ask the employer why the audit cannot be scheduled when it is convenient for the auditor. If the reason does not appear to have substance, then the plan’s collection attorney can be asked to intervene to gain acceptance of the date planned by the auditor.
If the reason given by the employer appears valid, then ask the employer for alternative […]
Posting by Ron Chandler, CPA
A recent law has taken effect in the Hotel/Restaurant industry in California. This law is called the “meal break” penalty law, which comes about when an employee works more than 10 hours per day, and is then entitled to two meal breaks. If the employee misses at least one of these meal breaks, he or she is entitled to one hour of pay. Another recent law requires four hours of pay if an employee does […]
Posting by Ira Mitzner
One of the heavily litigated issues in the construction industry is the “traveling contractor’s clause.” If an Ohio contractor has signed a collective bargaining agreement containing such a clause, and does work in a foreign jurisdiction (New York), that employer, when working in New York, must pay New York rates into New York funds. It is very important for the auditor to understand the correct manner of reporting such employment. There also are clauses that provide […]
Posting by Larry Beebe, CPA
Is an employer’s intent to evade being treated as an alter ego to a contributing employer a required element of proving alter ego status? This question was discussed in a December, 2009 article in the IFEBP’s Benefits and Compensation Legal Legislative Reporter.
The article stated that the “sixth circuit emphasizes that evidence of an intent to evade, when it presents itself, is a relevant factor in determining whether the alter ego doctrine is applicable, along with […]
