Webinar: the wage audit challenge
I recently co-presented at a webinar with the Kansas Department of Labor and Wal-Mart, where we discussed the challenge of wage audit compliance and recent work to help improve the process for everyone involved.
One thing that jumped out at me during the webinar was how much our attendees felt the pain adminstratively. Responding to a poll during the webinar, 38% of the more than 300 attendees cited “time and resources” as their biggest challenge. (see graphic)
The process is getting more complex. A lot of states are getting more aggressive about enforcement. Many states are conducting wage audits more often. Some are now assessing fines for improper or
untimely wage audit responses. Employer risk is steadily increasing.
We’ve been working with Wal-Mart Stores, Inc. and state departments of labor such as the Kansas DOL to develop solutions that can help. I talk about the new solution towards the end of the webinar so if you’d like to know more, please listen to the recording.
The speakers looked at wage audits from many angles. For example, we discussed the socialized cost of wage audits: poor wage audit responses lead to more improper benefit payments, which leads to higher tax rates for all employers. Better wage audit responses mean lower taxes for all employers, and greater success for states at meeting their program integrity goals. Making the wage audit process easier benefits everyone!
A 3.9 Billion Dollar Problem
The scale of the problem is huge: According to the latest figures from the U.S. Department of Labor, improper payments reached $3.9 billion nationwide for the reporting year 2016.
Yes, that’s $3.9 billion with a ‘b.’ Only a third of our attendees knew the problem was this large, as we learned from another live poll.
Whatever your feelings about the socialized cost, the real costs to you as employer are not going away. Inadequate responses to wage audits are likely to impact your unemployment tax rate over time. And the risk of fines is rising as well. You’ll find detailed discussion of this and much more in the webinar recording.
Or it you would like to know more about tools you can use to help make the process less painful, join us for an upcoming demo:
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