Payroll Tax Compliance Audit Services

Payroll tax issues and mistakes can be driven by human or system error, and can often result in hefty fines.

Our expert team can audit your payroll tax records, obligations, and setup to assess compliance with federal, state, and local laws, and provide a roadmap for resolving issues.


Areas to be reviewed and assessed by our team may include:


  • Tax filing records.
  • Recordkeeping and record accuracy tied to states and localities where employees work.
  • Pay statement details and corresponding state compliance requirements.
  • State tax registration status.
  • Utilization of earnings and deduction codes.
  • Pay dates and their alignment with state regulations.
  • Quarterly 941 reconciliation practices, including a review of earnings and deductions with specialized tax implications.
  • Company level exemptions.
  • Special routines (i.e. overtime calculations, imputed income, taxable fringe benefits, etc.).
  • Past tax filings to identify any gaps in filing status.


  • Location review and validation tied to state(s) where the employee works vs. lives.
  • Tax withholding and employee coding practices surrounding state income tax, local withholding, unemployment, etc.
  • Special considerations (i.e. visas, expatriate employees, etc.).
  • Employee documentation, including W-2 forms and any associated reporting.
  • Tax blocks and associated documentation.

To learn more about OperationsInc’s Payroll Tax Compliance Audit Services, please contact us at or (800) 307-5513.