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
Webinars
Provided by Yooz
Further Reading
Because of the American Rescue Plan of 2021, more companies and gig workers will be receiving Form 1099-K, Payment Card and Third Party Net...
If your employer plans to contribute to Trump Accounts, payroll has until July 4, 2026, to get it right. Coding errors made at setup create...
The Secure 2.0 Act of 2022 brought big retirement plan changes. But in spots, the wording wasn’t clear, leading to uncertainty among ...
Oregon’s companionship services exemption is narrowing for home care agencies under Senate Bill 1518. SB 1518 freezes Oregon’...
The Department of Labor (DOL) has finalized a technical amendment restoring the 2019 overtime salary threshold to the Code of Federal Regul...
Should you withhold child support from a bonus or other lump-sum payment you’re about to make to an employee? You’ll be able to get ...