What is a Payroll Audit?
A Payroll Audit is a thorough review of a company's payroll processes to ensure accuracy and compliance with taxation and employment laws. It involves examining records to verify that payments and deductions are correct and properly documented.
Explanation:
Regular payroll audits help prevent errors, detect fraud, ensure compliance with legal requirements, and maintain accurate payroll records. They are crucial for financial integrity and employee trust.
Practical Example of a Payroll Audit:
A large corporation conducts a payroll audit, reviewing employee classifications, wage calculations, tax withholdings, and record-keeping practices to identify discrepancies and ensure all payroll practices comply with legal standards.