Payroll Auditing

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Payroll Auditing

• SOLUTION

• Alternative Auditing Approaches to Tumultuous
  Thursdays Chaos
• Audit evaluation must begin with clear
  definition of the work to be audited
• Visit our website for other items of interest
• www.sru.edu/payroll
• Margie Riddell, Payroll Manager

This presentation addresses auditing approaches
to biweekly payroll processing in an effort to
stimulate thinking about how universities can
address internal auditing issues
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Payroll Best PracticesFor people who pay people

• SOLUTION

Payroll Auditing

• What is Payroll Audit?
• Payroll audit is a formal process used to
  establish internal controls of your payroll
• Why Review Best Practices?
• Discover how to simplify and improve the payroll
  audit review process
• Visit our website for other items of interest
  www.sru.edu/payroll

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Techniques for reducing the workload and error
rate of the HR/Payroll staff

• Best Practice

Payroll Auditing

• Are the proper tools in place?
• Wage Type Reporter for pre and post audits
• Cost Distribution Report for post audits
• Why Review Best Practices?
• To consistently account for all payroll expenses
  and ensure payments are properly allocated

Payroll Best Practices - For people who pay people
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• Best Practice

Payroll Auditing

• Wage Type Reporter

Payroll Best Practices - For people who pay people
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The Additional Pay Report is used to audit any
payment beyond regular earnings. For example,
department chair pay, sabbatical pay, out of
class pay, summer school payments, dual
compensation, overload, individualized
instruction, independent study, etc.

• Best Practice

Payroll Auditing

• Additional Pay Report
• Supplemental pay

Payroll Best Practices - For people who pay people
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• Best Practice

Payroll Auditing

• Wage Type Results
• Additional Payments Report
• Identify supplemental payments
• Organize payments by category
• Quick reference for additional pay
• Reduces errors during trial payroll

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Report used to audit and identify any
outstanding claims owed to university. For
example, the Art Department secretary falls and
breaks a bone but the HR/Payroll Office doesnt
get the injury call until 3 weeks after the
fact.

• Best Practice

Payroll Auditing

• Outstanding Claims Report
• Identify all claims

Payroll Best Practices - For people who pay people
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• Best Practice

Payroll Auditing

• Wage Type Results
• Outstanding Claims Report
• Identify outstanding claims
• Organize by category
• Quick reference guide
• Reduces errors during trial payroll

Payroll Best Practices - For people who pay people
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Used to Audit deferred holidays compensatory
leave being taken and paid in a current pay
period

• Best Practice

Payroll Auditing

• Deferred Holiday/Comp Leave Used Report
• Identify used deferred holiday comp leave

Payroll Best Practices - For people who pay people
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• Best Practice

Payroll Auditing

• Wage Type Results
• Deferred Holiday/Comp Leave Used Report
• Identify deferred holiday and compensatory leave
  payments
• Organize payments by category
• Quick reference for leave usage
• Reduces errors during trial payroll

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Leave Payout ReportAudit leave being paid
out in the current period comp, sick, annual,
etc.Leave Without Pay Audit any employee not
receiving pay

• Best Practice

Payroll Auditing

• Leave Payout Leave Without Pay Reports
• Identify specific leave payments

Payroll Best Practices - For people who pay people
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• Best Practice

Payroll Auditing

• Wage Type Results
• Leave Payout Report
• Leave Without Pay Report
• Audit any employee not receiving pay
• Organize payments by category
• Quick reference
• Reduces errors during trial payroll

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Audit all miscellaneous transactions with
positive or negative results to an employee's
pay.

• Best Practice

Payroll Auditing

• Miscellaneous Pay Report
• Identify misc. pay

Payroll Best Practices - For people who pay people
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• Best Practice

Payroll Auditing

• Wage Type Results
• Miscellaneous Report
• Audit any employee receiving miscellaneous pay
• Quick reference
• Reduces errors during trial payroll

Payroll Best Practices - For people who pay people
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The Net Compare Report created by Dave Kleman,
compares current net pay to previous net pay in
order to check any major changes from one period
to another

• Best Practice

Payroll Auditing

• Net Compare Report
• Audit for major percentage changes in regular pay

Payroll Best Practices - For people who pay people
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• Best Practice

Payroll Auditing

• Wage Type Results
• Net Compare Report
• Identify huge payment changes
• Identify zero payments
• Quick reference for CC changes
• Reduces errors during trial payroll

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The Retroactivity Report calls attention to any
payments or deductions occurring from a previous
period, paying in the current period

• Best Practice

Payroll Auditing

• Retroactivity
• Report
• Identifies prior period(s) payments and
  deductions

Payroll Best Practices - For people who pay people
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• Best Practice

Payroll Auditing

• Wage Type Results
• Retroactivity Report
• Identify payments from other periods
• Quick reference for retro pay
• Alter to review Payroll Journal
• Reduces errors during trial payroll

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The Garnishment Report identifies all employees
with wage attachments

• Best Practice

Payroll Auditing

• Garnishment
• Report
• Identify wage attachments

Payroll Best Practices - For people who pay people
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• Best Practice

Payroll Auditing

• Wage Type Results
• Garnishment Report
• Identify wage attachments
• Organize payments by category
• Quick reference for IRS levy, etc.

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The Overtime Report is used to audit all
overtime situations. V.P.s receive a copy of
the Overtime Report reflecting the overtime
earnings paid within their specific areas

• Best Practice

Payroll Auditing

• Overtime Report
• Identify overtime
• Control overtime
• Audit overtime

Payroll Best Practices - For people who pay people
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• Best Practice

Payroll Auditing

• Wage Type Results
• Overtime Payments Report
• Identify overtime
• Organize payments by category or EE
• Quick reference for overtime pay
• Reduces errors during trial payroll

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The Wage Report is used to audit the hourly
wage payroll

• Best Practice

Payroll Auditing

• Wage Report
• Audit hours work for temporary employees

Payroll Best Practices - For people who pay people
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• Best Practice

Payroll Auditing

• Wage Type Results
• Wage - Hourly Report
• Identify hourly payments
• Audit temporary employees
• Quick reference for hourly
• Reduces errors during trial payroll

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Individual timekeepers in all University
Departments enter leave, overtime and hours for
wage employees into SAPs CAT.Each pay period
timekeepers submit leave slips to HR where they
are audited using the CADO Report. Overtime and
Wage Timesheets are submitted to PAYROLL where
the Wage Type Reporter is used to audit and check
all overtime situations

• Best Practice

Payroll Auditing

• De-Centralization Leave Overtime

Payroll Best Practices - For people who pay people
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The process provides at least a two part check
for accuracy. Timekeepers check their own work
while the staff in HR/PAYROLL provide a double
check for all entries.This is where the Wage
Type Reporter supplies valuable, easy to audit
information.

• Best Practice

Payroll Auditing

• De-Centralization Leave Overtime

Payroll Best Practices - For people who pay people
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Questions?

• Audit Process
• Reports in an hour or less . . .