How much time do you spend preparing payroll audits for your business? Payroll audits are required quarterly or annually by Workers Compensation and Liability Insurance Companies as well as by New York State for Paid Family Leave and Disability. Insurance companies need to make sure business owners are paying their employees correctly, on time and complying with employment laws and payroll regulations. That being said, these audits can take considerable time away from your business in the preparation of documents, not to mention meeting with the auditor in person or virtually while maneuvering through the websites to upload documents and answer questions online. I prepare many of our business clients’ audits and it frees our clients up to work in their business instead of spending hours of time trying to figure out how to answer all the questions and submit proper documents for the audits.
While payroll audits are an excellent way for insurance companies to monitor a business’ payroll and make sure they are charging the business appropriately, they can be a headache for the business owner. If your payroll is not in order these audits will take even longer and may have you paying extra fees or payments. Inaccurately completing the mandatory payroll audits or processing your payroll incorrectly may even cause you to pay the wrong amount for insurance premiums.