Internal Auditor, Paranaque

Accuracy of Payroll Records:

• Ensuring that employee hours, overtime, bonuses, and deductions are correctly recorded.
• Verifying that salary payments align with employment contracts and pay scales.
• Cross-checking employee attendance or timesheets with payroll data

Compliance with Laws and Regulations:

• Verifying that payroll complies with local, state, and federal tax laws, including correct withholding of taxes (income tax, social security, etc.).
• Ensuring adherence to labor laws, such as minimum wage requirements, overtime rules, and employee classification (exempt vs. non-exempt).
• Ensuring compliance with benefit programs (health insurance, retirement plans, etc.).

Review of Payroll Processes:

• Evaluating the efficiency and effectiveness of payroll processing systems.
• Ensuring that all payroll-related processes (such as data entry, approval workflows, and payments
• follow a clear and standardized procedure.
• Reviewing approval processes to confirm that they are properly documented and authorized

Deductions and Benefits

• Reviewing employee deductions (for taxes, retirement contributions, insurance premiums, etc.) to confirm they are accurate.
• Ensuring that benefits such as vacation time, sick leave, and retirement contributions are properly accounted for.

Payroll Tax Reconciliation:

• Verifying the accuracy of payroll tax filings, including federal and state tax returns and reports.
• Ensuring that all required tax payments are made on time to avoid penalties.

Payroll Fraud Prevention:

• Checking for any signs of payroll fraud, such as unauthorized payments, ghost employees, or falsified timesheets.
• Reviewing the segregation of duties in the payroll department to ensure that no one person has control over both the preparation and approval of payroll.

Audit Trail:

• Ensuring that the payroll system provides an adequate audit trail, which includes documentation for all changes, approvals, and transactions.
• Verifying that payroll records are stored securely and accessible for future audits or inquiries

Reporting and Documentation:

• Preparing reports on audit findings and presenting them to senior management.
• Documenting discrepancies, suggesting corrective actions, and following up on past audit recommendations.