Nobody expects to be audited, but with at least 1 in 100 businesses being investigated every year, many are left in a panic when they receive the inquiry letter. Keeping accurate records of the following will help you pass any payroll audit:

• Employee Name
• Employee Address
• Employee Birth Date
• Employee Start Date, and dates of any temporary layoffs or termination date
• Rates of Wages
• Number of Hours Worked per Day
• The amount paid showing all deductions made from wages paid
• The date of annual vacation and the amount of vacation pay paid
• The dates on which each 24 hour rest period is given