Your Industry Guide to Effective, Efficient Payroll Audits

Payroll Auditing: A Guide for Multi-Employer PlansSecond Edition
By Lawrence R. Beebe and Philip Vivirito


With insights from Lawrence Beebe and Phil Vivirito's combined 65 years of experience, this updated guide explores best practices in payroll auditing. Payroll Auditing helps trustees fulfill their fiduciary duties by providing an in-depth understanding of payroll audit methodologies and procedures.


This book is published by the International Foundation of Employee Benefit Plans and is available at its online bookstore.

 

Concrete Contractor Properly Assessed Withdrawal Liability

Tuesday, 31st May, 2016 1:40


Written by Larry Beebe
Bond Beebe
P: 301.272.6025 E. beebe@bbcpa.com 

The construction industry exemption to the withdrawal liability rules allows the assessment of withdrawal liability only if the withdrawing employer continues to perform covered work or starts such work again within five years of being obligated to contribute.

In a case in the tenth circuit a concrete contractor ceased its obligations to contribute to a multi employer plain in May, 2010 and began doing the same work as the withdrawn employer.

The count ruled that withdrawal liability was triggered in October 2010 and on the date the two companies were under common control and withdrawal liability could be assessed on both companies.

(Ceco Concrete Construction., LLC v. Centennial State Carpenters Pension Tr., 2016 BL 139926, 10th Cir., No 15-1021, 5/3/16)

Hiring a Payroll Audit Firm, Question 19: How can we Streamline our Payroll Audit Process?

Thursday, 29th October, 2015 3:03


Written by Larry Beebe
Bond Beebe
P: 301.272.6025 E. beebe@bbcpa.com 

A prospective firm should answer this question by stating it constantly considers how to streamline the audit process for its clients. Each year, trustees and the audit firm should review the previous year and discuss how the audit program can be more efficient in the year ahead.

A payroll audit program should not remain the same year after year. It should be constantly evolving program. A frank discussion annually about the strengths and weaknesses of the program is essential.

For more in this series, see:

Hiring a Payroll Audit Firm, Question 18: How do you Schedule Your Payroll Audits?

Thursday, 22nd October, 2015 3:00


Written By Larry Beebe
Bond Beebe
P: 301.272.6025 E: beebe@bbcpa.com

The payroll audit firm should have a process identified for scheduling audits. It does not matter whether a supervisor, a clerical employee, or the auditor schedules the audit. What is important is that the person doing the scheduling keep a written diary of all contact with the employer during the scheduling process.

The great majority of employers cooperate with the scheduling process, but a few employers try to avoid scheduling the audit by refusing to commit to a set date and time. In those circumstances, the written documentation of the effort taken to schedule becomes essential. When an attorney has to be called in, the documentation can be used to convince a judge to compel the audit.

For more in this series, see:

Hiring a Payroll Auditing Firm, Question 17: Do you Discuss Your Findings With the Employer When you Complete the Field Work Portion of the Audit?

Thursday, 15th October, 2015 2:57


Written By Larry Beebe
Bond Beebe
P: 301.272.6025 E: beebe@bbcpa.com

A prospective payroll audit firm should answer this question with a question: What do you want us to do? The plan’s response depends on the circumstances. If the deficiencies have been fully identified by the end of the field work, the employer should be notified. On the other hand, if additional work is needed to determine whether more hours are covered by the collective bargaining unit (CBA), then a discussion with the employer may be premature. When findings are discussed, the employer should be told the findings are subject to change in the final audit report.

For more in this series, see: