Quick Answer: How Far Back Can A DOL Audit Go?

What is a wage and hour audit?

Accordingly, a wage and hour audit, when done properly with legal counsel, provides employers the opportunity to receive legal advice and direction regarding wage and hour laws and regulations, which may then provide the employer with a good faith defense in subsequent litigation..

How do you audit payroll records?

Here is an overview of the basic steps of a simple payroll audit.Verify the Employees Included on Your Payroll. Review your employees listed on your payroll. … Analyze Payroll Numbers. … Verify Correct Time Categories. … Reconcile Your Payroll Records. … Confirm Accurate Tax Withholding and Remittance.

How long does a DOL audit take?

10. How long should employers and employees expect the process to take? WHD expects that audits conducted under the program will typically take fewer than 90 days to complete.

How often do unemployment audits happen?

The auditor uses all the records to reconcile your wages, as well as, verify information. The auditor can answer specific questions you may have regarding any of the requested documents. Q How often can I be audited? A You can be audited once every 24 months.

How do I prepare for a Department of Labor audit?

The following are useful steps employers can take to prepare for a DOL audit:Maintain up-to-date policies.Conduct annual reviews of personnel records and engage in self-audits.Examine job descriptions, overtime records, employment classifications and use of independent contractors.More items…

What are the 3 types of audits?

What Is an Audit?There are three main types of audits: external audits, internal audits, and Internal Revenue Service (IRS) audits.External audits are commonly performed by Certified Public Accounting (CPA) firms and result in an auditor’s opinion which is included in the audit report.More items…•

What is an employment audit?

A job audit is a formal procedure in which a compensation professional meets with the manager and employee to discuss and explore the position’s current responsibilities. … The audit assists in determining where a position fits into the hierarchy of positions whether unionized or non-aligned.

What does the Department of Labor look for in an audit?

During a Wage and Hour Division audit, the DOL investigator will review payroll, employment records, and overall employee rights in the workplace. … After the investigation, the auditor will determine whether there has been a failure to maintain correct records or any other DOL violations by the employer.

How do you survive a DOL audit?

How to Survive a DOL AuditContact the auditor to find out specific information about the audit. … Gather the records in accordance with guidance provided by the auditor. … Designate one or two company representatives to work with the auditor. … During the audit, be courteous to and cooperative with the auditor.More items…•

What triggers a DOL audit?

The most common triggers for DOL audits are: Participant complaints – If any of your employee benefits plan participants reach out to the DOL with complaints about potential ERISA violations, your plan is likely to be subject of an audit.

What is an unemployment wage audit?

States use wage audits to validate an employee’s eligibility for unemployment benefits and to detect situations when an individual may have been improperly collecting unemployment insurance benefits while earning wages from an employer during the same week(s).