As an accounting firm, we structure our payroll audits as Agreed-Upon Procedure engagements in accordance with A.I.C.P.A. requirements. Marshall & Moss Payroll Compliance Services, LLC has always recognized the importance of Payroll Compliance Audits.
We developed an extensive payroll compliance audit program. We maintain a separate staff of payroll compliance auditors in each of our three office locations dedicated exclusively to performing payroll compliance audits. Our payroll compliance audit program is tailored for each client. It can be implemented locally and/or nationwide for national employer reporting environments. Our payroll compliance audit programs are developed based on a thorough understanding of the collective bargaining agreements in effect and the importance of the program for Taft-Hartley plans. We work closely with Fund management to customize the procedures to ensure that every payroll audit is effective.
This time-tested and cost efficient method also allows us to assist an inexperienced employer. All reviews end with an exit interview with the employer’s personnel to assist them in properly reporting to the Funds.
Why are payroll compliance audits performed?
The Employee Retirement Income Security Act of 1974 (ERISA) requires plan trustees to collect all contributions due the respective fund. Delinquent contributions are considered a prohibited advance of credit to a party-in-interest (contributing employer). The U.S. Department of Labor Prohibited Transaction Class Exemption 76-1 exempts extension, settlement, or non-collection of delinquent contributions from being considered prohibited if a reasonable, systematic, and diligent effort is made to collect the contributions. Payroll compliance audits are a perfect fit for compliance with the class exemption.