2% PAYROLL TAX REDUCTION EXTENDED FOR AT LEAST 2 MONTHS

Congress opted to extend the 2% reduction in Social Security withholding from employees and the similar reduction in self employment tax thru February 29th, setting up another legislative showdown on the subject 2 months from now.

Thru February 29th, the first $110,100 of earnings will be subject to the reduced 4.2% withholding rate. If the reduced rate is not subsequently extended the withholding rate on any wage over $18,350 will be retroactively adjusted to the 6.2% rate or whatever any […]

January 4, 2014 Accounting, Payroll Audit, Tax Read more...

Bond Beebe Professionals Author Second Edition of Payroll Auditing Guide

Bond Beebe, a certified public accounting and advisory firm, is pleased to announce that Lawrence R. Beebe, CPA, Firm Principal, and Philip Vivirito, Director of Payroll Audits, have completed the second edition of Payroll Auditing: A Guide for Multiemployer Plans. Published by the International Foundation of Employee Benefit Plans, Payroll Auditing provides industry best practices and insights on how to conduct payroll audits and manage payroll audit programs.

Originally published in 2008, Payroll Auditing helps benefit plan trustees fulfill their […]

October 9, 2013 Firm News & Events, Payroll Audit Read more...

Are You Paying Ghosts? Five Steps to Prevent Payroll Fraud

Joel Susco, CPA

For many companies, payroll is one of the areas where they are most vulnerable to fraud.  The Association of Certified Fraud Examiners (ACFE) reports that payroll fraud accounts for almost 10% of fraud cases and costs organizations an average of $48,000 when it occurs.

Think you’re too small for payroll fraud?  The ACFE notes that payroll schemes are reported twice as often in smaller organizations (those with few than 100 employees).  If your payroll is taken care of […]

March 4, 2013 Accounting, Forensic Accounting, Payroll Audit Read more...

Hiring a Payroll Audit Firm, Question 5: Do You Audit All Employees 100% or Do You Test Employees?

Posting by Larry Beebe, CPA

As part of this series, I am providing Plan Trustees with a list of questions they should ask when requesting proposals from payroll auditing firms.  Click here to view the full list of questions.

There are two schools of thought as to whether a 100% audit for all hours for all employees covered by the Collective Bargaining Agreement (CBA) should be done when conducting a payroll audit.  Some professionals state that you should always do a […]

February 22, 2013 Payroll Audit Read more...

Creating a New Fund? Update your Collective Bargaining Agreement

Posting by Ron Chandler, CPA

My firm was recently engaged to begin an employer compliance audit program for a new Taft- Hartley Health and Welfare Fund.  The master Collective Bargaining Agreement (CBA) was good for a four year period; a new Health and Welfare Fund was created during the second year of the agreement.  The health and welfare language in the agreement used verbiage that addressed self-funding eligibility for each employee, but there was never any addendum or memorandum to […]

January 22, 2013 Payroll Audit Read more...

Up Close and Personal: Home Audits

Posting by Phil Vivirito

It happens to every payroll auditor: the payroll audit that is performed in a person’s home.  This usually occurs because the owner of the company, or the company’s accountant, only has a home office. Unfortunately, “home office” can be a loose term.  Sometimes the home office is an actual office in the person’s home; sometimes, it’s the kitchen table.

I’ve done my fair share of these audits over the years. To capture the quirkiness of these awkward […]

January 3, 2013 Payroll Audit Read more...

What are the most successful ways to detect and prevent workplace fraud?

Fraud in the workplace can be detected, but prevention of fraud is even more valuable. What are the most successful ways to detect and prevent workplace fraud?

Businesses of all sizes are at risk for fraudulent activity, especially due to more incentives and pressures for companies to outperform, and more financial hardships for employees to overcome than ever before. Even if your company has never experienced any type of fraud, the possibility should not be ignored.

Detecting workplace fraud involves review […]

December 19, 2012 Forensic Accounting, Human Resources, Payroll Audit Read more...

Avoiding Common Payroll Auditing Errors

Posting by Phil Vivirito

If you are new to payroll auditing, there are several common pitfalls that can wreak havoc on your data.  However, they can easily be avoided if you know what to look for and what clarifying questions you need to discuss with an employer.  Here are four common errors with practical solutions for avoiding them and ensuring accurate payroll audits.

1. Counting Overtime Twice
Issue: Some payrolls list total hours and total overtime hours separately.  The overtime hours appear […]

November 8, 2012 Payroll Audit Read more...

Playing by the Rules: Best Practices for Payroll Audit Policies

Posting by Andrew Staab

The collective wisdom in multiemployer plan administration dictates that there has to be a written policy for everything.  That seems extreme, but it is better to err on the side of caution.  However, just because there is a written policy does not necessarily mean it is the right policy.  In this post I will discuss best practices for creating and updating your plan’s payroll audit policy.

Collections Policy vs. Stand-Alone Payroll Audit Policy
There is considerable discussion about […]

September 13, 2012 Payroll Audit Read more...

Helping an Employee Benefit Fund Maintain Confidentiality: Understanding Attorney-Client Privilege and the Work Product Doctrine

Posting by Travis Ketterman

A recent federal case provides important reminders on maintaining the confidentiality of Fund information through the attorney-client privilege and the work product doctrine.  The following reviews the underlying issues in the case and provides some pointers for payroll auditors in maintaining confidentiality.

The Facts of the Case – Broken Confidentiality
In Resilient Floor Covering Pension Fund et al v. Michael’s Floor Covering, Inc., the Funds investigated whether a newly formed company was liable for either withdrawal liability or […]

September 5, 2012 Payroll Audit Read more...