Audit of the payroll calculation and reports

Audit of the payroll calculation and reports

Competent organization of payroll calculation minimizes conflicts and affects the motivation of each employee. Violations associated with untimely, incomplete, incorrect calculations attract the attention of labor inspectors. Payroll check by an independent auditor identifies deficiencies in the work of the accounting department, avoids discrepancies with legislative acts, and prevents labor disputes.

The UCMS Group company checks the correctness of the calculation of wages, and provides a written opinion based on its results. The report reflects the identified errors, recommendations for their elimination and improvement of the accounting department’s working methods.

Goals and objectives of verification

Checking the correctness of the payroll calculation convinces that the methods used in the organization comply with the current legislative norms. Checking allows you to identify errors and establish the degree of their impact on accounting or tax reporting.

The verification process establishes:

  • the effectiveness of the current settlement system;
  • the correctness of the payroll for piecework / hourly work, payments of bonuses, travel allowances, compensations, sick leave, vacation pay, compliance with the salaries established by the staffing table;
  • the correctness and timeliness of deductions to off-budget funds, the amount of tax deductions;
  • completeness of transactions in accounting;
  • literacy in the preparation of reports related to the calculation of salaries, the timeliness of the submission of forms.

Reasons for carrying out verification activities – conflicts due to staff dissatisfaction with the level of wages, cases of overpayment of dismissed employees, complaints when submitting reports, fines from regulatory authorities.

It is imperative to use the services of an external provider when changing the remuneration system, introducing new software for automated calculations, a complex accrual scheme, after the dismissal of the chief accountant or the head of the HR department.

Content of audit procedures

Payroll check includes the study of local documents directly or indirectly affecting the issues of remuneration. This is a collective labor agreement, staffing table, regulations on bonuses, work schedule. We analyze processes comprehensively:

  • we check the primary HR and PA documentation, we check the availability and correctness of paperwork for recording time, the amount of work performed;
  • we make a selective recalculation of all types of charges, we check the timeliness of the transfer of alimony;
  • we control the eligibility of deductions from wages;
  • we analyze the procedures of interaction between the accounting department and the personnel department;
  • we monitor the submission of reports to the tax authorities, off-budget funds.

Cooperation begins after filling out a questionnaire, on the basis of which a commercial proposal is formed. Terms and cost of services are agreed individually.

Benefits for service customers

The cost of conducting a payroll audit is well worth it. The professional expertise of UCMS Group has a number of advantages:

  • transparent, non-conflict relations with staff;
  • absence of claims from the labor inspectorate, minimal risk of fines, litigation due to mistakes;
  • formation of a positive image due to the absence of negative feedback from employees in social networks.

Checking the calculation and payment of wages for customers from Kiev and other cities of Ukraine is carried out in your office. Professionals of the UCMS Group with extensive experience in calculating wages and conducting inspections are involved in projects, our specialists know all the current requirements of the legislation.