| [ 4.6.1 - Schedule Two Fields] |
A blank copy of Schedule 2 is located in the Appendix Section of this manual.
Schedule 1 and Schedule 2 work together to verify the acknowledged payroll.
The object of verifying the posting of payroll data is to make sure that
wages earned by an employee were recorded correctly in all of the employer's
payroll records, and then reported correctly to our Agency.
The process starts by examining the source documents for an employee's wages.
Wage payments made to one employee for one quarter must be traced from a
source document through the other records in the employer's payroll system.
The purpose of this trace is to verify that payroll information on the source
document was posted correctly to all succeeding records in the payroll system.
The employee's verified quarterly wage total must then be traced to the
employer's copy of the quarterly report and then finally compared to the
wage amount appearing on TWC's wage record system. All record types used
to verify the payroll system must be addressed in the body of Schedule 2
or in the Comments section.
If the wage amounts are different in any of the payroll records, the Accounts
Examiner must investigate to see what caused the difference. The AE must
trace additional payroll items from other quarters and/or from other employees
in order to determine what caused the differences. After determining the
reason for the variances, the Accounts Examiner must make all appropriate
adjustments to the Agency's records, and discuss the problem with the employer.
The Comments Section should include an explanation of any variances.
The payroll posting accuracy verification for "new" employers
will include a modified procedure. This modified procedure calls for tracing
the wages of an employee for one quarter from a source document (such as
a canceled check, check stub, time card, etc.) to a different payroll record
maintained by the employer. A trace to the employer's copy of the quarterly
wage report and to the wages posted on the TWC wage system is not possible
for new employers because those items do not exist. However, a trace of
wage payments should be possible from a payroll source document through
to the last employer record used by the Auditor to prepare the employer's
quarterly reports. In cases where the only payroll record that exists is
the source document, the Auditor must explain in the final audit report
why the verification of the payroll posting system could not be conducted.
For converted audits, which involve obtaining an employer's delinquent quarterly
reports, the payroll verification should be done using a previously reported
quarter within the audit scope. If no quarters have been reported within
the audit scope, the Auditor should perform the payroll verification using
available records such as in the case of auditing "new" employers
or explain in the audit report why the verification could not be accomplished.
