Independent Payroll Compliance Review

Payroll processing and payroll compliance
are not the same thing.

Your payroll runs on time. But is it compliant? Most business owners don't know what they don't know. An IRS notice, a DOL audit, or an employee claim can make the cost impossible to ignore. Payroll Risk Advisors provides an independent, structured review of your payroll practices before that happens.

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Common Risk Findings
High Worker misclassification: contractors treated as employees or vice versa
High Overtime calculation errors under FLSA: unpaid wages and penalty exposure
Medium Payroll tax deposit timing violations: late deposits triggering FTD penalties
Medium Improper deductions from employee paychecks: state law violations
Low I-9 recordkeeping gaps: incomplete or expired employment eligibility documents

We are not a payroll processor. We are not a law firm. We are an independent advisory practice that reviews what your current payroll setup is actually doing, and what it's missing.

The issues most businesses
don't know they have.

Payroll compliance failures rarely announce themselves. They accumulate quietly, in classification decisions, calculation methods, and filing patterns, until a notice or audit forces the issue.

Worker Classification

Independent Contractor vs. Employee

Misclassification is one of the most common and most expensive payroll compliance failures. The IRS and DOL apply separate, overlapping tests. Getting it wrong can mean years of back taxes, penalties, and employee claims.

High Exposure
Wage & Hour

Overtime Calculation Errors

The FLSA's overtime rules are more complex than most employers realize. Errors in the regular rate calculation, exemption classification, or off-the-clock time create significant back-wage liability.

High Exposure
Tax Compliance

Payroll Tax Deposit Failures

Federal tax deposit schedules change based on your lookback period. Depositing on the wrong schedule, even by one day, triggers penalties. Most businesses don't realize they've been doing it wrong until the IRS notice arrives.

Medium Exposure
Employment Practice

Recordkeeping & Documentation Gaps

FLSA requires specific payroll records to be retained for specific periods. DOL audits frequently result in penalties not because of underlying violations, but because the records needed to defend against a claim don't exist.

Medium Exposure

Structured. Documented.
Defensible.

Every engagement follows the same rigorous methodology, designed to surface risk, document findings, and give you a clear picture of where you stand.

01

Payroll Health Assessment

A structured intake review of your current payroll setup: tax accounts, filing history, worker classifications, pay practices, and documentation.

Standardized intake questionnaire Document collection & review Initial risk identification
02

Risk Summary Report

A written report classifying every finding as High, Medium, or Low risk, with plain-English explanations of the underlying issue and its potential exposure.

High / Medium / Low risk classification Plain-English findings Estimated exposure ranges
03

Action & Escalation

Recommended remediation steps for each finding. Where legal or accounting guidance is warranted, we identify and refer. We know our lane.

Prioritized remediation roadmap CPA / attorney referral when needed Optional ongoing monitoring

A complete review,
not a checklist.

The initial engagement covers every material area of payroll compliance risk: payroll, employment practice, and labor compliance.

Worker classification review (employees vs. contractors)
Federal & state payroll tax deposit compliance
FLSA overtime exemption and calculation review
Pay stub and wage statement compliance
I-9 and new hire documentation review
Payroll recordkeeping adequacy assessment
State-specific compliance for all employee locations
Written Risk Summary Report with all findings

The cost of finding out
too late.

IRS payroll penalties start at 2% of the unpaid tax and scale to 15%. DOL back-wage assessments can reach three years. State agencies operate on their own schedules. A structured review costs a fraction of a single compliance failure, and gives you documented evidence that you took your obligations seriously.

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Start with a conversation,
not a commitment.

Tell us about your business and we'll follow up to discuss whether a payroll compliance review makes sense for your situation. No pressure, no sales pitch.

Advisory disclaimer: Payroll Risk Advisors provides compliance advisory services only. We are not attorneys and do not provide legal advice. Where legal guidance is warranted, we will identify that need and refer to qualified counsel.
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We typically respond within one business day.