Written by Kurt Needles

Needles & Associates, LLC

P: 303.430.4225 E: This e-mail address is being protected from spambots. You need JavaScript enabled to view it

Last week I was going out of state to work on an annual audit client.  Another client in the same town had a delinquency issue, so since I was already going to be there, I said I would do it. After all, it was only five guys for a short audit period.  How bad could it be?

Well, sometimes I forget what a tough job payroll auditing can be.  The owner’s wife was overbearing, and the information supplied to me had everything except the plumbers blacked out.  I was told that I was a “hitman” for the union, that I wanted personal payroll information on them, that the payroll audit was some sort of “punishment” and that I had no right to see the Electricians!  (Not auditing for them.)  No matter how much I tried to calm her down, rationally explaining why payroll audits need to be performed, assuring her that since no one was paying me to audit the Electricians, I had no intention of doing so.  I told her that we are independent (e.g., not hitmen for the union)... yada yada yada – all the standard lines.  This sparring match went on for at least an hour.  They were calling the different unions, the owner coming in to find out what was going on, etc.  When I finally got what I needed, it only took me 20 minutes or so to copy the information.

As I write this I realize that this blog is for all the managers.  Every once in a while it is good to see what your staff is enduring every day.  Sometimes I forget.  I’m taking them all out for a beer, or two, on me.

I just finished a payroll audit of a small burger joint/ bar. The CBA covered everyone in the restaurant. There were seven employees on payroll but only two were reported. I picked up the five employees not reported and when finished reviewed the findings with the employer’s accountant. According to the accountant, of the five employees not reported, one was a supervisor, one was the assistant manager, one was the night manager, and one was the general manager. “That’s only accounts for four,” I said. Then he stated that the last person was the window washer. I turned towards the front of the restaurant, and noticed that the sun could barley make through the grimy dirty windows and said “I don’t think so those windows are filthy!” I left all five employees not reported my payroll audit report.

I was doing a payroll audit in a bar next to guys drinking beer.  The owner of the construction company was also the bartender.  I was looking at the cash disbursements and the certified payrolls.  There was a total disconnect between the records I was reviewing, and I was wondering if I was given the proper information.  When I asked the "bartender" what was up, he said, "don't believe anything in the certified payrolls.  The general wouldn't pay me until I submitted them, so I made them up the other night."