Mid-Year Payroll Audit Checklist

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 ready for the second half of the year.

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

Quarterly filings like Form 941 are due July 31. If you operate in multiple states, check that your state filings are up to date too—each one has its own rules.

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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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Let’s make the second half of the year even smoother than the first!