Working with us during an audit
Our auditors contact employers by phone, email or letter of the pending audit; identify the records that need to be available for inspection; and to set a mutually agreeable date, location, and time to conduct the audit. The auditor sends the employer an appointment confirmation letter, pre-audit questionnaire and required records checklist.
What auditors look for
The auditor will perform a wide variety of audit functions, which may include:
- Looking for evidence of unreported employees, casual labor, independent contractors and other workers who provide personal labor.
- Sampling payroll and time records to compare them to wages and hours reported to us.
- Reviewing the type of business activity and whether a new employer is assigned the correct tax rate.
What you can do to speed up the audit
- Respond in a timely manner to letters, phone calls and requests for information.
- Have an employer representative at the audit appointment who is familiar with the operations of the business and payroll records.
- Provide all books and records to the auditor as requested.
- Make sure the requested records are well organized and can be easily identified by the auditor.
- Respond to the auditor’s questions.
What happens after the audit
At the end of each audit, the auditor sends a post-audit letter explaining any audit findings. If the audit resulted in the business owing taxes, penalties or interest, a Notice and Order of Assessment (NOA) detailing any taxes due, penalty and/or interest liability will be sent.