Payroll Audits Purpose

A payroll audit is a deliberate process to review payroll processes and records. The ultimate goal of an audit is to deliver higher payroll accuracy to your employees and to ensure your payroll processes are fully in compliance with regulations.

Ideally, a payroll audit should be conducted on a routine basis or any time there are notable changes in your organisation or its internal processes. Performing internal audits can help you catch errors and prevent possible external audits in the future.

Safeguard Your Organisation with A Payroll Audit

While payroll is often seen as a low-risk area, considerable losses can occur here. Running payroll accurately is arguably one of the most critical organisational and employer responsibilities. But even if you use a reliable payroll processing system, there’s room for user error. Errors such as incorrectly input numbers, failure to add or change an employee’s details, failure in removing a terminated employee from the payroll etc., can cause havoc if it stays unnoticed. To combat these potential problems, entrust Payroll Vibes with the task of conducting your payroll audit.

Why A Payroll Audit?

Regularly performing a payroll audit can alert your organisation to mishaps early on. Payroll Vibes can catch these mistakes and assist your organisation to avoid statutory penalties, payroll fraud, incorrect statutory submissions and disgruntled employees.

Benefits of Conducting a Payroll Audit

So, why should a payroll audit be conducted? The better question is, why not?

Payroll accuracy is often the most critical reason to conduct a payroll audit. According to a recent Deloitte study, payroll accuracy is one of the top three organisational payroll concerns. To address this concern, eighty-one (81%) percent said that they conduct periodic reviews of their payroll processes.

Regularly reviewing your payroll activities can help you:

• Maintain accuracy and compliance;
• Identify and correct errors;
• Keep payroll records organised;
• Strengthen your financial controls.

Maintain A Healthy Payroll Management Process

Managing payroll requires keeping your attention on various deadlines and compliance requirements while also tracking changes and deductions in employee pay. By entrusting Payroll Vibes with periodically auditing your payroll activities, you can not only identify and correct errors, but you can also find opportunities for improvement and automation enabling the organisation to manage payroll more efficiently.

In Summary, conducting an effective payroll audit procedure keeps you in control of your organisation’s financial management. When you manage payroll effectively, you do not have to waste time reacting to problems you could have avoided.

Another key step in maintaining HR workload, while increasing your organisations cost-effectiveness, is to consider partnering with a professional company such as Payroll Vibes. We can provide much-needed help with Payroll needs and questions.