Auditing Department

Our auditors perform payroll audits on all of those employers that have a signed contract with us. They usually try to audit once every year. Payroll records that are needed to perform the audit are W-2’s and PA-UC2’s. At times, payroll records are used to identify specific discrepancies.

There are a number of actions that can be taken by the employer to guarantee a “clean” audit.

  • First, and foremost, the employer should pay the fringe benefits based on the pay date and not the work date. This date also coincides with the dates used for the W-2 and PA-UC2. This should make the calculations easier for the employer’s payroll department.
  • Secondly, the employer can develop their own system to compare the W-2 with the wage totals on the fringe benefit reports. The wages on the reports could be compared every quarter with the employer’s PA-UC2 forms to identify any errors on the fringe benefit reports. The errors could then be corrected before the auditor schedules an audit.
  • Lastly, a list of all sick time, vacation, holiday pay or bonuses should be kept to balance any discrepancies that may arise when comparing the fringe benefit totals and PA-UC2 totals.


Following these suggestions should alleviate any “surprises” when our auditors arrive for your audit.