Payroll Audit Avoided $4M in Fines & Penalties
Client had a decentralized payroll organization. After implementing a new gross pay calculation system to address issues with using three different systems, streamline processes, and reduce manual efforts, a post-project review of reports indicated one division’s payroll was not as expected.
First, we re-calculated a month of pay for the division in question. Further analysis indicating one division’s payroll team was not following payroll best practices and was also attempting to circumvent the system to pay some employees more and others less at their discretion.
Following this, it was determined that all payroll for 9 months would need to be recalculated and compared to actual payouts to determine monies due the employees or the company. First, we set up a separate environment of the gross pay calculation system. Next, we organized and led the client’s team to re-key, re-validate, and re-process nine months of payroll records, representing an average of 50 entries per employee per pay period.
Completed audit of client’s payroll, finding irregularities in division of 900+ employees.
- Analyzed data and provided recommendations
- Executed go-forward plan
- Provided client reports of over and under payments by employee by pay period.
- Client made arrangements to pay current and former employees.
- Client addressed issues with division’s payroll team.
- Client avoided fines/fees and penalties in excess of $4M.