Finally, a “go-to” resource for Payroll Auditing.

bookPayroll Auditing: A Guide for Multi-Employer Plans
By Lawrence R. Beebe and Philip Vivirito

Payroll auditing guidance is lacking for professionals working with employee benefit plans who are responsible for and who perform payroll audits. Best practices in payroll auditing, procedures and methodologies of performing an audit have not been given enough focus. This book helps trustees fulfill their fiduciary duties by understanding payroll audits.

This book is published by the International Foundation of Employee Benefit Plans and is available at its [online bookstore].

Lack of Cooperation by the Employer - Reason 11
Friday, 07 May 2010 09:38

Written By Larry Beebe
Bond Beebe
P: 301.272.6025 E: This e-mail address is being protected from spambots. You need JavaScript enabled to view it

Unsafe Conditions

In very rare instances, the payroll auditor may be faced with one of the following:

1. Unsafe physical environment in the area inside the employer’s premises.
2. Unsafe physical environment in the area surrounding the employer’s premises.
3. Sexual suggestions or threats.
4. Threats of physical violence.
5. Display of weapon by the employer.

In any instance where the auditor feels threatened, he/she should immediately remove himself/herself from the employer’s premises.  The conditions encountered by the auditor should be provided to the plans attorney.  Often, the payroll audit can be rescheduled to a safe location such as the employer’s attorney or accountant’s office.

The auditor can help insure his/her safety if the home office always knows where you are and by insuring that adequate transportation is available to leave if necessary.

I once did a payroll audit in a very unsafe area of the Bronx.  A cab took me there.  When I got done with the audit, I did not have the phone number of a car service to pick me up, and no cab would come to that location.  The employer refused assistance.  I might still be there if one of the employees working there hearing of my dilemma said he would take me to LaGuardia on his way home.  Ultimately, it was my own fault.  I did not take preventative action to insure my own safety.

 
Lack of Cooperation by the Employer - Reason 10
Friday, 30 April 2010 08:26

Written By Larry Beebe
Bond Beebe
P: 301.272.6025 E: This e-mail address is being protected from spambots. You need JavaScript enabled to view it

Insufficient Work Space

Sometimes an employer representative thinks the auditor will go away faster if he/she is given inadequate working space, or if the space is deliberately hot or cold.  When I suspect an employer is doing this, it backfires on the employer.  I am suspicious that the employer is hiding something and I work harder than ever to find deficiencies.

If inadequate work space is provided, the auditor should do two things.  The first thing is to complain to the employer.  If the problems are fixed quickly, the auditor can proceed with the job.  If the problems are not fixed or inadequately fixed, the auditor should draft a narrative describing the deficiencies and the action or lack of action taken by the auditor to fix the problems.  In those rare instances where legal action has to be taken to collect deficiencies found as a result of the audit, the fund attorney may be able to use that narrative to advantage in pursuing the delinquency.

One time an employer put me in a room next to a construction site where there was jack hammering all day long.  I complained to no avail.  I stuck it out and, with the help of Advil, was able to complete the job and I found a sizeable deficiency. 

 
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