2013 PA Statewide Conference

Process Improvement Presentation, Raeann Hofkin, CPP

Payroll Internal Audit - Discovery

Payroll:

  1. How many independent contractors do you have?
  2. How many exempt employees?
  3. How many non-exempt employees?
  4. Do you have non- exempt employees with more than one rate? How is their OT computed?
  5. How do you audit their payrolls? Who performs the audits?
  6. How do you reconcile their payrolls? Per Pay? Quarterly? Yearly?
  7. Who performs payroll account reconciliations?
  8. Who reviews audit trials to ensure those making the changes have the authority to make the changes and the changes are accurate?
  9. Has your location ever done a physical payout?
  10. Do you allow rounding? Such as 8:07 is not changed, changed to 8:10, or changed to 8am?
  11. Do you have beginning/ending grace periods?
  12. When does the pay period start? Day of the week and time of day?
  13. What is your payroll frequency?
  14. Does the punch out determine what day the hours from that shift are reported? Example: someone working night shift 11pm to 7am. Does the shift count on the day they punch out?
  15. What are the standard shifts? Are there any outliers/exceptions?
  16. Do you have a seniority system? Please explain
  17. Attendance points system? Please explain
  18. Do you allow shift swapping? Please explain
  19. Do you have a mill turn? Please explain
  20. Do you have Shift differential? What are they?
  21. How are the drivers paid?
  22. What percentage of direct deposit users do you have?
  23. Provide copies of current time sheets.
  24. Do you have any employee’s claiming “Exempt” from FIT?
  25. Do you get a new W4 every year for employees claiming exempt?
  26. What’s your process for identifying people claiming Exempt?
  27. How are deductions set up? Do they roll over until stopped or do they reset every year? (example – united way, benefits, etc
  28. What States are your employees working?
  29. What earnings go into “regular”?
  30. What earnings go into “OT”? In other words, is this just the premium portion of the OT?
  31. What other special earnings codes are you using and what makes up the total?
  32. What is your process for recording the cost of healthcare on the W2’S in box 12 code DD?
  33. Do you any employees receiving an auto allowance? If yes, what is your process for when and how you record the auto allowance?
  34. Are your rate increase a mass change or based on anniversary dates?
  35. If pay increase is paid on the anniversary date, does the increase start on the beginning of a pay period or exact anniversary date and retro calculated manually?
  36. Are increases uploaded or manually keyed?

Paid time off:

  1. What’s the process to request time off?
  2. What is your PTO policy? Please send a copy of the policy.
  3. Do you allow employees to cash out unused PTO?
  4. Do you allow PTO carryover? What are the requirements/restrictions?
  5. Do you pay out any earned but not taken PTO? Sick? Vacation? Upon termination
  6. Do you allow employees to go into the negative balance?
  7. How is PTO accrued?
  8. Who tracks it?
  9. Are part timers different than full timers?
  10. Do you have a tiered vacation policy? If yes, explain.
  11. What are the standard holidays?
  12. Do you have ‘floating holidays’?
  13. What is your sick time policy?
  14. Are Sick/PTO time included towards hours worked for the overtime calculation?
  15. Do you have personal time? How many days? Restrictions/Requirements?
  16. Do you allow employees to donate vacation time? If yes, what is the process?
  17. What is your process when an associate works the holiday?

Reporting:

  1. What reports are you providing to management? Attach a copy.
  2. Who gets these reports?
  3. Why are you providing these reports?
  4. Are you providing paper copies or electronic files?
  5. How often are you providing the reports?

Miscellaneous:

  1. What is your fiscal year?
  2. Do you have an org chart? If yes, please send most updated copy.
  3. Do you have a disaster recovery payroll plan for payroll? If yes, please send copy.
  4. Do you have a union? Send a copy of the contract.
  5. Does the union dictate the pay frequency or pay date?
  6. Is anyone on the payroll staff CPP certified? Do you/they want to be?
  7. What do you need from me to be successful in your role?
  8. Do you have any thoughts on Paycards?
  9. Do you use IPay?
  10. Do you still provide stubs to employees on Ipay?
  11. Do the Employees know they can turn off paper copies?
  12. How/When is Ipay promoted at your location?
  13. Do we have any employees working from home on a “more than temporary basis”?
  1. Send me a copy of your Master Control – only the pages with earnings and deductions.
  2. Please provide a copy of any special calculations and accrual calculations. Define of what they are supposed to be doing.
  3. What ADP products are you using? Example – Ipay, G/L, QuickView, Total Pay, etc
  4. Is your time and attendance automated? If yes, what are you using?
  5. When an employee is called to Jury duty, what is your process? Do you pay them? Do they sign over the jury duty payment?
  6. Is there anything I didn’t ask that I should have asked? What do I not know that I should know?
  7. What questions do you have for me?
  8. Run report listing all direct deposit accounts sorted by number and then name to see if there were duplicates. – check for fraud
  9. How do you process the stock options?
  10. What is your military pay process? Do you pay a certain amount of days per year? If so, how is it tracked?

Benefits:

  1. Are all the locations receiving standard benefits? Please send a copy of all benefit information that is provided in section K of the Airgas new employee booklet.
  2. What is the FMLA process and how is FMLA tracked?

Data Privacy:

  1. What is your process for ensuring data privacy of personal information?
  2. Do you have a data privacy policy?
  3. How do you process employee verifications?
  4. Do you have a clean desk policy?