Feds now conducting coronavirus act audits
The Department of Labor (DOL) has ramped up enforcement of various laws, such as the new Families First Coronavirus Response Act (FFCRA). New on the scene: coronarvirus act audits.
Several employers have already been tripped up by FFCRA and what it requires, and the DOL has fined them for noncompliance.
That’s the warning to come out of the 2020 American Payroll Association Virtual Congress Xstream.
These days the agency’s also going after employers for wage and hour issues involving overtime, hours worked and pay deductions.
Even if you’re doing everything right, your company may still receive a visit from the agency to double-check that your procedures are in-line.
So you want to make sure you and your finance team stay prepared for a surprise audit.
Staffer reminders for auditor visits
Should the DOL come knocking, make sure your team knows to act on the auditor’s requests immediately.
While they’re working to put together everything the audit requires, come up with a plan. It should address how you’ll notify other departments involved and work with them to gather documentation for the audit (e.g., job descriptions, hiring policies, on-boarding and orientation documents).
It’s also a good idea to set aside a private space in your office for the auditor during the investigation.
Have any discussions with the auditor while that person is in the office? Send a follow-up email to save the details in writing.
Preventing fed scrutiny
Being proactive and auditing your own records can help avoid DOL scrutiny in the future.
If you discover FFCRA violations or violations of other wage and hour laws during your own review, remain honest and up front about your findings.
Remember: Employers remain on the hook for FFCRA penalties for violations. But you can resolve other wage and hour issues without penalty through the DOL’s voluntary PAID program.
Free Training & Resources
Further Reading
IRS has announced some inflation-adjusted dollar amounts you’ll need if your benefits package includes tax-favored health plans. F...
IRS released regs at the end of November, leaving retirement plan sponsors with just over a month to get their 401(k) plans up to speed. ...
The Treasury Department and Internal Revenue Service (IRS) released proposed regulations for the new 1% excise tax on remittance transfers ...
The IRS has started rolling out guidance on the One Big Beautiful Bill Act, which contains the no-tax-on-overtime provision and much more. ...
Is your company a joint employer, subject to trickier overtime compliance issues? If you don’t ask that question, employees might do ...
In 2022 about a dozen states put law changes – some at the constitutional level – directly into the hands of the voters on Elec...