Payroll Audit Checklist: 8 Things to Review

Things change—new hires, promotions, policy updates—and those changes don’t always make it cleanly into your payroll system.

This isn’t about a full-blown audit. It’s more like a quick tune-up to help you stay organized, compliant, and catch potential issues before they become bigger problems.

Here are a few areas worth reviewing:

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1. Payroll Runs & Adjustments

Look over your payroll history. Are there any missing runs, off-cycle payments, or voided checks that need attention? Getting everything logged accurately helps avoid confusion later.

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2. Employee Classifications

Still have the right people marked as employees vs. contractors? Classification errors can lead to penalties—better to catch it now than during a surprise audit.

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3. Raises, Bonuses & Pay Changes

Have any salaries changed since January? Make sure those updates were processed correctly, and that year-to-date amounts match what’s been paid.

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4. Benefits Deductions

This one’s easy to miss: health plans, retirement contributions, commuter benefits—are deductions being applied correctly based on employee selections?

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5. PTO & Sick Time Balances

Take a look at time-off balances. Do they line up with what’s been used and what your policy allows? If not, now’s a good time to fix any discrepancies.

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6. Job Titles & Departments

If someone’s role or department has shifted, make sure your records reflect that. It’s a small detail, but it can affect everything from reporting to benefits eligibility.

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7. Tax Filings & Key Deadlines

Review your quarterly tax filings, including Form 941, and make sure all required federal and state filings are up to date. If you operate in multiple states, remember that filing requirements and deadlines can vary.

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8. Upcoming Holiday Schedules

Bank closures and holiday schedules can affect your normal payroll processing. A little advance planning goes a long way here.

Taking time now to review these items helps prevent small mistakes from turning into big corrections down the road. If you need a hand going through any of it—or want us to walk through it with you—we’re here to help.

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Reach out anytime:

Phone: (718) 625-1800

Email: cs@brandspaycheck.com

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A little time spent reviewing your payroll now can save a lot of time correcting it later.