Let David C. Bryant, CPA assist you in your next audit!
An audit is the examination and verification of a company’s financial and accounting records to determine accuracy and precision.
In the last couple of months David C. Bryant, CPA has represented more audits than ever before.
These audits have consisted of the following:
Worker’s Compensation Audit
A Worker’s Compensation Audit can be presented in four types. The most common Worker's COmpensation Audit is the Premium Audit report involving determinination of the actual premium instead of the initial estimated premium.
A Worker’s Compensation Audit will normally require payroll data with overtime information. It may also include the specific classification of independent contractors. The auditor will ask for certificates of insurance from all independent/subcontractors used in the business. If you don’t have these forms, please download them here. The purposes of these certificates are to ensure that the independent contractors have separate liability insurance.
The auditor may request additional information to conclude his/her examination.
An Unemployment Audit is essentially to examine whether a business should reclassify their independent contractors as employees.
A review of the employer’s payroll and payments made to independent contractors will be necessary as well as possible consultation involving the management, workers, and independent contractors to determine the correct classification of the staff.
Classification of these workers can determine whether or not you have paid in enough payroll type taxes. This is a very important piece to the puzzle so don’t let it frustrate you, allow us to help you!
Internal Revenue Service Audit
There is many reasons you may be selected for an IRS audit and you will want to make sure you are prepared. The IRS will likely require you to provide your records that account for the information found on your tax return. Do you have proof? This is the question that will arise! The Internal Revenue Service wants to make sure that everyone is compliant with tax law. In order to do this, they complete audits in several different ways, including compliance letters, IRS office audit, and an actual field audit. In any of these audits, you will be required to provide proof and detail about the information on your tax return.
Don’t think it is likely to be chosen for an audit? THINK AGAIN!
Just this year, President Obama has increased funding for the Internal Revenue Service by $5-12 billion for tax law and compliance enforcement. This means additional audits will occur in the upcoming year!
DLLR (Department of Labor, Licensing & Regulation) Audit
Although the DLLR of Maryland’s Audit has many purposes, the most common examination of records occurs for the sake of Unemployment Insurance. It ensures compliance of Maryland employers with the Unemployment Insurance Law. Even though this audit is based on unemployment insurance, it looks at most of a companies records including, payroll, tax returns, check registers, cancelled checks, chart of accounts, property returns, etc.
Gathering all of this information can be an aggravation and most of all, time consuming. Let David C. Bryant, CPA handle your financial information so when it comes to AUDIT time, aggravation is not necessary!
Important Information for Businesses
"Under the law, employers with an automatic payroll system are required to establish a payroll deposit retirement savings arrangement for employees through a state-run trust. This means that employers that use an automated payroll system must offer a retirement plan or sign their employees up for MarylandSaves."
MarylandSaves launched state-wide on September 15, 2022. For more information about how the program works, please visit MarylandSaves.com.