A payroll audit ensures accurate financial data and compliance with regulations. The audit includes record-keeping, benefits administration, tax withholding, and employee compensation.
Yes, automated software makes payroll a breeze. You can run payroll with minimal manual effort and in less time using the right software like Onfolk. But you shouldn’t neglect a payroll audit.
In this blog post, we’ll look at why you should run a payroll audit and the payroll risk factors that an audit helps to reveal. We’ll also explore the risks involved in failing to run one and how you can access our free risk assessment toolo.
What is a Payroll Audit?
A payroll audit is an integral part of compliance. To avoid risk entirely, you should regularly audit your payroll system. Making it a habit can only benefit you because your data constantly changes and updates as your team expands.
In fact, you’d be wise to run a payroll audit once a year, if not more. This can help to keep you updated on whether or not your business is maintaining compliance.
A payroll audit also reveals potential risks by evaluating payroll systems to ensure accuracy and reliability. It will look into your employee’s data, wages, pay rates, and taxes.
But what else?
What’s Included in a Payroll Audit?
Some payroll risk factors that can result in underpayments or overpayments include base rates, penalty rates, and leave accrual. A payroll audit assesses multiple compliance elements, including:
- Employee payroll records, such as pay slips, tax forms, and timesheets
- Employee classification - are they an employee or contractor?
- Time and attendance compliance
- Record-keeping compliance
- Tax compliance
- Benefit deductions
What Risks Come with a Failure to Run Payroll Audits?
Even big brands have underpaid employees, a fact that resulted in negative publicity. Not only were these brands forced to apologise to their employees, but they also had no choice but to admit to it publicly, resulting in reputational damage.
It’s more difficult to reconcile payroll inaccuracies and errors the longer they accumulate. And payroll embezzlement and payroll fraud can go unnoticed for longer than they should.
Without conducting a regular payroll audit, you risk losing credibility and trust with your employees, regulators, and stakeholders.
Where to Start with Reducing Payroll Risk, and a Free Risk Assessment Tool
Payroll can be a challenge, and calls for the analysis of hundreds (maybe thousands) of transactions. However, running a payroll audit is easier if you know exactly what to include in your audit.
That’s why the team at Onfolk has developed the risk assessment tool to help you run your first (or next) payroll audit. It includes everything you need to run a thorough audit so that you can stay on top of your payroll process.
The risk assessment tool will allow you to track risks and the measures you can take to control them. Download the Onfolk risk assessment tool now to remain fully confident that your employee data is accurate and compliant.
A payroll audit ensures accurate financial data and compliance with regulations. The audit includes record-keeping, benefits administration, tax withholding, and employee compensation.
Yes, automated software makes payroll a breeze. You can run payroll with minimal manual effort and in less time using the right software like Onfolk. But you shouldn’t neglect a payroll audit.
In this blog post, we’ll look at why you should run a payroll audit and the payroll risk factors that an audit helps to reveal. We’ll also explore the risks involved in failing to run one and how you can access our free risk assessment toolo.
What is a Payroll Audit?
A payroll audit is an integral part of compliance. To avoid risk entirely, you should regularly audit your payroll system. Making it a habit can only benefit you because your data constantly changes and updates as your team expands.
In fact, you’d be wise to run a payroll audit once a year, if not more. This can help to keep you updated on whether or not your business is maintaining compliance.
A payroll audit also reveals potential risks by evaluating payroll systems to ensure accuracy and reliability. It will look into your employee’s data, wages, pay rates, and taxes.
But what else?
What’s Included in a Payroll Audit?
Some payroll risk factors that can result in underpayments or overpayments include base rates, penalty rates, and leave accrual. A payroll audit assesses multiple compliance elements, including:
- Employee payroll records, such as pay slips, tax forms, and timesheets
- Employee classification - are they an employee or contractor?
- Time and attendance compliance
- Record-keeping compliance
- Tax compliance
- Benefit deductions
What Risks Come with a Failure to Run Payroll Audits?
Even big brands have underpaid employees, a fact that resulted in negative publicity. Not only were these brands forced to apologise to their employees, but they also had no choice but to admit to it publicly, resulting in reputational damage.
It’s more difficult to reconcile payroll inaccuracies and errors the longer they accumulate. And payroll embezzlement and payroll fraud can go unnoticed for longer than they should.
Without conducting a regular payroll audit, you risk losing credibility and trust with your employees, regulators, and stakeholders.
Where to Start with Reducing Payroll Risk, and a Free Risk Assessment Tool
Payroll can be a challenge, and calls for the analysis of hundreds (maybe thousands) of transactions. However, running a payroll audit is easier if you know exactly what to include in your audit.
That’s why the team at Onfolk has developed the risk assessment tool to help you run your first (or next) payroll audit. It includes everything you need to run a thorough audit so that you can stay on top of your payroll process.
The risk assessment tool will allow you to track risks and the measures you can take to control them. Download the Onfolk risk assessment tool now to remain fully confident that your employee data is accurate and compliant.
