Fractional Plus - Ontario Payroll Audit

Why Conduct a Payroll Audit?

A payroll audit is a critical process for ensuring that an organization’s payroll system is accurate, compliant, and efficient. Payroll is not just about paying employees; it is a legal, financial, and operational function that directly impacts an organization's sustainability, employee trust, and regulatory standing. This audit will help businesses identify risks, inefficiencies, and areas for improvement while ensuring compliance with employment laws, tax regulations, and best practices in payroll management.

Payroll is the heartbeat of any business—getting it right means ensuring financial stability, regulatory compliance, and employee satisfaction. This audit serves as a proactive measure to safeguard your organization’s payroll integrity, enhance internal controls, and future-proof payroll operations.

(For Internal Use by Fractional HR Experts – Confidential Audit Form)


Key Objectives of the Payroll Audit

Ensure Compliance with Labor Laws & Tax Regulations: Payroll laws vary by jurisdiction, and failure to comply can lead to fines, penalties, and legal risks. This audit assesses whether an organization is following minimum wage laws, tax withholding requirements, overtime rules, vacation pay policies, and record-keeping mandates.

Detect & Prevent Payroll Errors: Payroll errors can be costly—whether due to misclassification, incorrect deductions, late payments, or system inefficiencies. This audit helps businesses identify discrepancies before they escalate into major financial or legal issues.

Verify Employee Classification & Compensation Accuracy: Misclassification of employees (e.g., contractors vs. employees) can lead to significant penalties. This audit ensures employees are correctly categorized, salaries are equitable, and pay structures align with industry standards and legal frameworks.

Enhance Payroll Security & Fraud Prevention: Payroll fraud, unauthorized access, and data breaches pose major risks to an organization. The audit evaluates security measures to ensure only authorized personnel have access to payroll data, transactions are properly approved, and fraud-prevention controls are in place.

Improve Payroll Efficiency & Cost Management: Payroll processing inefficiencies can lead to delays, errors, and unnecessary administrative costs. This audit helps streamline payroll workflows, eliminate redundancies, and enhance automated payroll solutions for greater accuracy and speed.

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Email *
Your Name:  *
Company Name:
Your Role: 
Section 1 
Number of Employees: (Dropdown: 1-10, 11-50, 51-100, 101-500, 500+)
 *

Payroll Processing Frequency: (Multiple Choice: Weekly, Biweekly, Semi-Monthly, Monthly)

 *
Payroll Software or Provider Used: (Short Answer)
 *

Are there different payroll structures for different employee groups? (Yes/No)

If yes, describe the variations. (Long Answer)
 *

Do you process payroll internally or use a third-party provider? (Multiple Choice: Internal, Outsourced, Hybrid)

 *
Who is responsible for payroll processing? (Short Answer – Name & Role)

How are employees classified? (Check all that apply: Full-time, Part-time, Temporary, Independent Contractors, Interns, Other – Specify)

 *
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