A payroll audit is a systematic review of a company's payroll processes to ensure accuracy and compliance with tax laws, wage regulations, and employee entitlements.
During an audit, discrepancies may be identified—such as unpaid overtime—that need correction before regulatory deadlines are met.
For example, if an audit reveals that certain employees were not compensated for overtime hours worked during busy periods, adjustments must be made promptly to comply with labor laws and maintain employee trust.
