Sample Audits to Discoverdefects Duringpay Period Processing

Sample audits to discoverdefects duringpay period processing

• Active EE without Pay(LOA status or pay may have already been paid as off-cycle to terminated EE)
• Terminated employees with pay
• No payroll gross earnings with OK to Pay turned ON (imputed income)
• No earnings with deductions (negative net pay created by arrears balances)
• Payroll Gross Pay over ‘X’ – defined by your company’s requirements
• EEs hired before current pay period without YTD (retro)
• Merit increases back dated prior to current pay period (retro)
• Prior Pay period salary decreases for EEs (especially for commissioned workforces with draws or job placements of demotions after RIFs/do you retroactively decrease pay?)
• Future dated company transfers(EEs deductions may stop prematurely)
  Company transfers – do all benefits transfer over or is a manual process required?
• Job changes in a semi-monthly pay cycle (effective dating may create salary variations/job codes, cost centers, supervisors, location, salary, etc.)
• Comp Changes report (comp plan assignment appropriate)
• EEs with more than ‘X’ payment transactions in one period
• Prorated Pays (for new hires, LOA & terms)
• Employee changes report (to show address/work location changes which may require a tax-setup change)
• SUI state and income states are not the same
• Excessive refunds or negative deduction amounts
• Non-Taxable payments (tuition or adoption assistance)

Ghost employees and/or employee records with erroneous data; perform the following series of tests.

• Identify employees with > 2 different employee IDs and duplicate bank account numbers for the same bank routing number.
• Identify employees with different employee IDs and duplicate home addresses.
• Identify employees with different employee IDs and duplicate social security numbers.
• Identify employees with social security numbers > or < 9 characters, as well as social security numbers that appear to be erroneous (111111111, 222222222, etc.).
• To identify unauthorized payroll transactions, perform the following test.
• Identify employees with salary changes during the quarter. Sort the data by number of changes to identify employees with a significant amount of changes. For employees with significant salary changes during the quarter (threshold to be determined), request documentation from Payroll evidencing the reason for the change. Verify that the changes made appear to be valid.
• To identify inaccurate payroll transactions, perform the following test.
• Compare the employee annual salary record to the most recent pay period. Divide the annual salary by the regular pay in the most recent pay check. Identify records where annual salary divided by regular pay is less than 24. Results less than 24 indicate that the teammate received a paycheck that was worth more than 1/24th of their annual pay. For records where annual salary divided by regular pay is less than 24, contact Payroll to identify why the employee record does not agree to the most recent pay check.