A tax audit is a time to prepare and not to panic. Many companies are requested to supply documents to support deductions, and if your company keeps good records, a tax audit can be a simple inconvenience.
The important thing is to prepare for your date with the tax auditor. He or she can be a federal auditor, a state auditor, or a local auditor from the IRS. Whoever comes, you should be ready with documentation and good information that supports your company’s payroll tax filing.
Here we will look at four steps that can help you prepared for the big day. But first, let’s understand the meaning of payroll audit.
What Is A Payroll Audit?
A payroll audit is an examination that analyzes s a company’s payroll processes to ascertain accuracy. It examines things such as business’s current employees, wages, pay rates, and tax withholdings.