Why We Don’t Do Payroll Audits – Reason 6
Written By Larry Beebe
Bond Beebe, Accountants & Advisors
P: 301.272.6025 E: This e-mail address is being protected from spambots. You need JavaScript enabled to view it

“The Employers Would Never Let Us Look At Their Records”

Of all the reasons cited for not doing payroll audits, this is probably the weakest.  If I were a contributing employer to a benefit plan, I would willingly open my books and records to the plan’s auditor.  I would want to show everyone that I am reporting honestly.  Management trustees for plans often insist that their companies be the first ones audited in each cycle.  If the trustees prove their honesty, they can be diligent in pursuing those who don’t report accurately or honestly.

If the plan documents are properly drawn, the employer does not have a choice about allowing their records to be audited.  Normally the employer signs a participation agreement, and by signing that agreement, agrees to be bound by the plan and the agreement and declaration of trust.  The agreement and declaration of trust often contains language whereby the employer agrees to make certain records available for a payroll audit.

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