Written by Phil Vivirito
Bond Beebe, Accountants & Advisors
P: 301.272.6090 E: This e-mail address is being protected from spambots. You need JavaScript enabled to view it

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 compliance for two or more audit cycles can be put on a six year rotation, while those that have findings are kept on the three year rotation.  Those employers on the six year rotation can be audited for the most recent three year period and expanded for the full six years if there are significant findings.  Keeping a good database will make it easy for the plan’s auditor to track the audits and determine which employers go on a three year or six year rotation.

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