Compliance Auditing

Whether an employer has three employees working from home offices or multiple locations and thousands of employees, the compliance specialists at Hemming Morse have vast experience in understanding collective bargaining agreements (CBA), trust agreements and related employer contributions requirements. The team works exclusively in this area and is adept at reviewing employer records and navigating the many different payroll and accounting systems. Our streamlined approach and deep experience lead to efficient audits that effectively capture compliance audit discrepancies, providing our clients with the information they need to help ensure plan contributions are complete and accurate.

Representative Matters

Alter Ego Discovery

Hemming Morse compliance specialists uncover over $1 million in unreported contributions.

The Hemming Morse team was conducting compliance procedures on a newly established business entity. After diligent review of employee records, we ultimately established that the entity was actually an alter ego of an employer already bound to a collective bargaining agreement (CBA). Our discovery of employees, facilities and costs that had been shared between the two entities helped prove the employer’s method of circumventing agreement terms. Ultimately, more than $1 million in fringe benefit contributions, liquidated damages and interest were determined to have been unreported to plan trust funds.

Wage and Hour Analyses

Hemming Morse finds miscalculation in vacation and sick pay, resulting in “bank” for employees.

Hired for an independent review, Hemming Morse assisted a union and reporting employer in determining whether the employer’s method of calculating vacation, holiday and sick hours and earnings was in accordance with the terms of its collective bargaining agreement. The team’s review determined that compensation in these areas had, in fact, been miscalculated, resulting in the employer’s agreement to bank under-accrued vacation, holiday and sick hours for employees’ later use.

Compliance Sampling Procedures

Hemming Morse efficiently identifies reporting discrepancies for large employer, correcting under-reporting of contributions.

Hemming Morse conducted random compliance sampling procedures for an employer with a large employee base and spanning several operational years. Stratified samples were evaluated based on selected attributes, such as new hires, terminations and class level. Analyzing the results, the team efficiently identified reporting discrepancies in each stratified sample, leading the employer to conduct expanded testing in the specific areas determined to have caused under-reporting of contributions to the plan’s trust funds – ultimately resulting in corrected contributions.