Recently in California, 3 restaurants were audited and found guilty of “wage theft”. While we know that you and you business are not doing anything shady, this proves that payroll audits DO happen.
Enforcement investigations usually include a payroll audit of the previous three years to determine minimum wage, overtime and other labor law violations, and calculate payments owed and penalties due. And that is exactly what happened to the 3 restaurants in LA, California.
Why are accurate payroll records so important?
ONE: A lack of good bookkeeping and payroll records can hinder the growth of your business and even the development of individual employees. When good records are kept, everyone benefits.
TWO: Good employee records can help minimize any potential disputes between the employee and the employer, should any arise.
THREE: Having your bookkeeping done well and having accurate payroll records helps the business stay organized and gives you peace of mind. This is especially true when you have a reliable bookkeeper, such as the services provided at Gold Standard Tax.
FOUR: As already mentioned, payroll audits DO happen. Having meticulous payroll records can save your company millions (as in the case with the 3 restaurants… they lost millions).
Let us know if you have any questions regarding your payroll records.