Duggal Professional Corporation

  Chartered       Professional      Accountants

 Accounting,       Tax,        Business Advisors

Ph. 780 863  2224,    info@taxcounting.com

CPA

Payroll Audits: Why Are They Important?

According to the Canadian Payroll Association, 54% of business leaders and business owners don’t know how to conduct or manage payroll audits. Also known as compliance audit, payroll audits are conducted to counter a number of payroll and HR related challenges encountered by organizations.

So, why should your business hire professional payroll auditing services? Here are a few benefits of these financial services.  

 

It Verifies Your Payroll Information

 

When was the last time you personally verified or updated your business’s payroll information? Auditing professionals verify the pay distribution according to the rate of pay for each employee, ensuring that there are no errors in the payroll information. The auditing process also helps ensure that the pay rates match with your employees current contracts.

 

It Verifies Employment Statuses

 

In addition to verifying payroll information, auditing also verifies the employment status of employees. This can be trickier to track in larger organizations where there are hundreds of employees. Auditing professionals ensure that former employees or those on unpaid leaves aren’t receiving paychecks.

 

It Reviews Compliance Practices

 

Businesses are required to maintain accurate records of their accounting practices. However, there are often unintentional errors in the documentation of this information. Auditing professionals review these practices and identify any inefficiencies within the record-keeping process. They also identify potential error-inducing practices and review your payroll ledger accounts in detail to verify the transactions mentioned there such as that of taxes, paychecks, withholding, and insurance.

 

It Ensures Proper Payments & Contributions


Payroll auditing also ensures that employees working on hourly basis have recorded the hours that they were paid for. This procedure further helps in confirming the number of sick days and vacation days taken by employees, and ensures that they were paid accurately for it. Furthermore, payroll auditing also accounts for any employee contributions and deductions and verifies these details.

At Duggal Professional Corporation, we offer payroll management and auditing services to business owners. We also provide thorough bookeeping and tax services, tax compliance services, and business consultancy services to help small business owners make the most of their financial situations.


Get in touch with us today for more details about our payroll management and accounting consultancy in Edmonton.