Payroll Compliance Audits
Legacy Professionals LLP, in recognition of the importance of payroll compliance audits for employee benefit funds, has developed an extensive payroll compliance audit program. We maintain a separate staff of payroll compliance auditors in each of our locations dedicated exclusively to this service. Our standard payroll compliance audit program, tailored to each client's needs, is implemented locally and nationwide for those national employer reporting environments. Our payroll compliance audit programs are developed based on a thorough understanding of the collective bargaining agreements in effect.
Payroll Compliance Audits - Quick Questions and Answers:
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.
How is a payroll compliance audit defined?
A payroll compliance audit is a review of the employer records needed to determine whether the employer is in compliance with the collective bargaining agreement and the plans' governing trust document when making contributions to the plan. This is one part of our payroll compliance audit program.
How do payroll compliance audits benefit plan trustees?
Legacy Professionals LLP, in recognition of the importance of payroll compliance audits for employee benefit funds, has developed an extensive payroll compliance audit program. We maintain a separate staff of payroll compliance auditors in each of our locations dedicated exclusively to this service. Our standard payroll compliance audit program, tailored to each client's needs, is implemented locally and nationwide for those national employer reporting environments. Our payroll compliance audit programs are developed based on a thorough understanding of the collective bargaining agreements in effect.
Payroll Compliance Audits - Quick Questions and Answers:
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.
How is a payroll compliance audit defined?
A payroll compliance audit is a review of the employer records needed to determine whether the employer is in compliance with the collective bargaining agreement and the plans' governing trust document when making contributions to the plan. This is one part of our payroll compliance audit program.
How do payroll compliance audits benefit plan trustees?
- They detect whether the plan is receiving the proper amount of employer contributions.
- They determine whether the plan has accurate and complete participant data used to determine and provide benefits.
- They serve as a notice to employers that the trustees are monitoring collections.
- They help avoid qualified opinion on the plan's financial statements by providing the necessary evidential matter for the plan's auditor with respect to the reasonableness of recorded employer contributions.
For more information about our payroll compliance audit services, please contact us at info@legacycpas.com.
