Payroll Auditing Non-Traditional Records

Posting by Sarah Azimi Stone
A recent payroll audit our firm worked on had some unusual aspects.  We were sent 20 boxes of records of truck tickets which had a bare minimum of information.  Our job was to calculate the hours worked for truck drivers and compare it to the hours reported.  The tickets might or might not show names, truck numbers and log-in or log-out times.
We needed to compile all of the information in a presentable manner which made […]

Separating Collective Bargaining Agreements From Trust Documents

Posting by Kurt Needles, CPA

One step we auditors always perform is determining when contributions are due to the fund, known as the “Trigger Point.” A Collective Bargaining Agreement (CBA) may have union clauses that will give the employer some type of probationary period on new hires. This applies to the employers’ rights to terminate or when an employee’s union status must be obtained. It does not, however, apply to the Trust funds contribution unless specifically addressed in the CBA […]

Payroll Auditing When “We Aren’t Signatory”

Posting by Kurt Needles, CPA
At some time in their career, a payroll auditor will be told by an employer that their company is not signed to a collective bargaining agreement (CBA), even though they are reporting employees. Sounds ridiculous, but it happens a lot. Hopefully the auditor has a copy of the signature page in their file.  This is a good sign that the company is not reporting all hours worked in qualifying employment under the CBA.  The best […]

Payroll Audits – The Toughest Call

Posting by Kurt Needles, CPA

There are times when a payroll auditor in the field needs to decide to stay and review the records received, or leave the company. The best action may be to get kicked out, but it’s a tough judgment call.

The situation occurs when the auditor has correctly followed all the pre-visit procedures. The auditor communicated lists of records needed, time period, purpose and time of visit. When showing up at the company, he/she is only given […]

Payroll Auditing: Using a Pre-Audit Questionnaire

Posting by Phil Vivirito

To prepare for the payroll audit, a brief list of questions may be e-mailed, faxed, or mailed to the employer. The auditor usually informs the employer when scheduling the audit and requests that the employer e-mail or fax back the completed questionnaire. This pre-audit questionnaire contains questions that would be common for any audit, such as: how many people are on the payroll, and has the same person been preparing the remittance reports for the entire […]

Current Employer Contribution Issues

Posting by Larry Beebe, CPA

There were two cases reported in the IFEBP’s June 2008 Legal Legislative Reporter dealing with employer contribution issues.  In one case, the court ordered a company to make contributions on behalf non-union employees.  The work was covered by a Project Stabilization Agreement (PSA) and the courts ruled that workers covered by the PSA had to be reported even if they were non-union employees.

The second case involved a trust agreement which calls for the discretionary imposition […]

Clarify contract language for better collective bargaining agreements, better payroll auditing

Posting by Ron Chandler, CPA

From time to time, we find that the collective bargaining agreements we audit are deficient as to defining or explaining specifically how, when or which hours or other methods of contribution are to be made for health and welfare and pension benefits.  Several years ago, we made some Local Unions aware of these deficiencies, and found that subsequent agreements had specific language clearing up any ambiguities from the prior contract.

Lesson learned:  Do not hesitate to recommend to […]