What Does Payroll Audit Mean?
A payroll audit is when a person from an insurance company performs an audit on a company’s payroll. The purpose of these audits is to make sure that employee benefit plans are receiving the correct funding.
Insuranceopedia Explains Payroll Audit
Life and health insurance are two types of coverage that are commonly offered to employees through employee benefit plans. Part of the purpose of a payroll audit is to figure out a premium that is due for the previous year’s coverage. Since payroll can be very influential in deciding these premium amounts, insurance companies take the time to perform audits.