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Payroll Audit

It is vital that a payroll audit is carried out and signed off by a responsible person each month.

The following information should be included in the payroll audit:

  • The opening Head Count at the beginning of a month
  • The closing head count at the month end – After payroll has been processed. – to ensure that no ghost employees are on the payroll
  • Any new engagements - check the documentation for start date, salary, correct leave allocations, if an employee starts after the start of the month, check pro-rata salary.
  • Discharges – check termination date, that leave has been correctly paid out and that the number of days paid out are correct.
  • Check all other payroll changes – process an audit trail of all changes and ensure that there is documentation for all changes.
  • Check bank account changes – must have written, stamped and signed confirmation from the bank

Once all changes have been checked, the payroll audit report must be signed and dated.

An excellent report to process and keep with the payroll audit is a variance report – this will advise of any variances from the previous month, and any variances on the payroll audit need to be explained and signed off

Pay Solutions offer a payroll audit service to all companies requiring such a specialised service.

Need help with your Payroll Audit? Contact Pay Solutions now!