Payroll Compliance

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One of the First

Lindquist was one of the first accounting firms in the country to recognize the importance of payroll compliance audits for multiemployer (Taft-Hartley) plans. Today, we maintain a separate staff of auditors dedicated exclusively to this service, conducting more than 2,000 payroll compliance audits annually.

Our payroll audit program and specific procedures are adjusted based on trust rules, characteristics, needs and a thorough understanding of the applicable collective bargaining agreement(s) (CBAs). The depth and experience of our compliance staff meet the needs of local, regional or nationwide trust funds. 

As an independent party, Lindquist serves the plan participants through direction from the Board of Trustees to ensure proper reporting. Our auditors respect and value employers’ time and strive to be unobtrusive. We also respect the security of employer records and data, and our auditors are trained and provided with the necessary tools to ensure the secure transfer of electronic data.

We combine our experience with the complexities of CBA administration and our familiarity with all payroll and reporting systems to ensure a smooth and efficient auditing process. We communicate regularly with employers, administrators and trust counsel throughout the process: from scheduling through audit preparation and on to completion.

Common Misconceptions

Here are some common misconceptions—and the reality behind them—about the role of payroll compliance auditors.

We work for the local union. This is not the case—we are independent professionals, engaged  by the Board of Trustees of an employee benefit plan to provide payroll compliance testing services. 

We are the administrator. It is a common misconception that we are responsible for billing contributing employers for employee benefit contributions. We are not. Our role in the collection process is to test employer contributions to ensure proper trust reporting. We work directly with plan administrators to obtain relevant information to conduct payroll compliance testing; however, we are independent of the administrator and other plan professionals.

We interpret CBA language. Our job is to verify that trust contributions are supported by employer records and to report our findings to the Board of Trustees. We do not interpret or opine on CBA terms; rather, we rely on the bargaining parties to provide clarification and interpretation of CBA language when necessary.  

 

Proven Methodology

We continuously update our payroll audit program and procedures by drawing on our experience performing thousands of payroll audits over the years. The program, which has been presented at a number of International Foundation of Employee Benefit Plans seminars, represents a field-tested approach to payroll auditing. Our firm has a proven methodology, and our quality control process includes constant, high-level review of procedures to ensure we are at the forefront of best practices.

Our approach to payroll auditing does not necessarily stop with determining the accuracy of an employer’s reporting compliance. If requested, our payroll compliance auditors can also assist the employer’s personnel in understanding the terms of the CBA and the proper completion and reporting of participants’ data to the benefit fund.

Through this approach and the payroll audit procedures we have established, we have served our clients with timely, efficient and cost-effective payroll auditing for 40 years.

 

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Benefits for trustees, employers and plan participants, payroll compliance programs:

  • Support trustees in meeting their fiduciary responsibility to ensure collection of all contributions due to the trust
  • Provide trustees with an independent review to ensure the plan has accurate and complete participant records
  • Serve notice to contributing employers that the trustees are monitoring contributions to the trust
  • Level the playing field for all employers, using an even-handed approach
  • Improve reporting accuracy over time as a byproduct of testing

Thought we would ask...

Does your trust’s payroll compliance program use the “piggybacking” concept?

One of the First

Lindquist was one of the first accounting firms in the country to recognize the importance of payroll compliance audits for multiemployer (Taft-Hartley) plans. Today, we maintain a separate staff of auditors dedicated exclusively to this service, conducting more than 2,000 payroll compliance audits annually.

Our payroll audit program and specific procedures are adjusted based on trust rules, characteristics, needs and a thorough understanding of the applicable collective bargaining agreement(s) (CBAs). The depth and experience of our compliance staff meet the needs of local, regional or nationwide trust funds. 

As an independent party, Lindquist serves the plan participants through direction from the Board of Trustees to ensure proper reporting. Our auditors respect and value employers’ time and strive to be unobtrusive. We also respect the security of employer records and data, and our auditors are trained and provided with the necessary tools to ensure the secure transfer of electronic data.

We combine our experience with the complexities of CBA administration and our familiarity with all payroll and reporting systems to ensure a smooth and efficient auditing process. We communicate regularly with employers, administrators and trust counsel throughout the process: from scheduling through audit preparation and on to completion.


Benefits for trustees, employers and plan participants, payroll compliance programs:

  • Support trustees in meeting their fiduciary responsibility to ensure collection of all contributions due to the trust
  • Provide trustees with an independent review to ensure the plan has accurate and complete participant records
  • Serve notice to contributing employers that the trustees are monitoring contributions to the trust
  • Level the playing field for all employers, using an even-handed approach
  • Improve reporting accuracy over time as a byproduct of testing

Common Misconceptions

Here are some common misconceptions—and the reality behind them—about the role of payroll compliance auditors.

We work for the local union. This is not the case—we are independent professionals, engaged  by the Board of Trustees of an employee benefit plan to provide payroll compliance testing services. 

We are the administrator. It is a common misconception that we are responsible for billing contributing employers for employee benefit contributions. We are not. Our role in the collection process is to test employer contributions to ensure proper trust reporting. We work directly with plan administrators to obtain relevant information to conduct payroll compliance testing; however, we are independent of the administrator and other plan professionals.

We interpret CBA language. Our job is to verify that trust contributions are supported by employer records and to report our findings to the Board of Trustees. We do not interpret or opine on CBA terms; rather, we rely on the bargaining parties to provide clarification and interpretation of CBA language when necessary.  

 

Proven Methodology

We continuously update our payroll audit program and procedures by drawing on our experience performing thousands of payroll audits over the years. The program, which has been presented at a number of International Foundation of Employee Benefit Plans seminars, represents a field-tested approach to payroll auditing. Our firm has a proven methodology, and our quality control process includes constant, high-level review of procedures to ensure we are at the forefront of best practices.

Our approach to payroll auditing does not necessarily stop with determining the accuracy of an employer’s reporting compliance. If requested, our payroll compliance auditors can also assist the employer’s personnel in understanding the terms of the CBA and the proper completion and reporting of participants’ data to the benefit fund.

Through this approach and the payroll audit procedures we have established, we have served our clients with timely, efficient and cost-effective payroll auditing for 40 years.

 

Thought we would ask...

Does your trust’s payroll compliance program use the “piggybacking” concept?