Case Study: Payroll Audit
Our client, a financial services firm, reached out to us because they had concerns regarding their payroll team and payroll process. Payroll seemed to take a large portion of time, and management had concerns that their firm was not in compliance with all tax regulations.
We sat with the client’s payroll person start to finish on an entire payroll processing cycle. Every step was dissected to ensure that there was a double check of information. We implemented a full scale audit of the payroll process, time clock, garnishments, 401K reporting, FSA reporting, and general payroll organization. We also looked for ways to automate the system, to lessen the likelihood of errors. Using the client’s payroll system, we created several internal reports to find any discrepancies or questionable items within the client’s payroll functionality.
During the audit process, we identified several issues concerning incorrect tax setups, as well as local taxes for two jurisdictions that were missing. We assisted the client in registering for these taxes, as well as prepared tax returns to keep the client in compliance. We also discovered that new hires were not being reported through the client’s payroll vendor. We updated their payroll process to include new procedures to ensure that these types of errors will not occur in the future. The client has since requested an annual audit.