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Payroll Audits: What Every Church Should Know

Preparation can prevent an audit—or handle one if it arises.

Years ago, a panicked client called after the Department of Labor provided notice that it was preparing to audit the ministry's payroll. A disgruntled warehouse worker filed a complaint about unpaid overtime pay, initiating the audit.

The DOL informed me the audit was set for Good Friday—only 72 hours away. I politely informed the federal employee that the ministry was closed on Good Friday. She replied "just a moment." After hearing loud typing on the other end, she continued: "That is not a federal holiday. We will be there Friday."

After an extensive auditing process, we received good news. The DOL determined the disgruntled employee had been paid in accordance with DOL standards.

But there was bad news, too. When the DOL audits an employee's wage and hour claims, it reviews the complainant's file as well as EVERY SINGLE EMPLOYEE file for the past two ...

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Posted:
  • October 20, 2015

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