Audit Questions & Answers
- DO I INCLUDE OUR CAFETERIA PLAN IN TOTAL GROSS WAGES?
Yes, payments for cafeteria plans (IRC 125) that are made through employee-authorized salary reduction from the employee's gross pay are to be included in Total Gross Wages.
- DO I INCLUDE 401K IN TOTAL GROSS WAGES?
Yes, payments for retirement plans that are made through employee-authorized salary reduction from the employee's gross pay are to be included in Total Gross Wages.
- SHOULD OVERTIME TOTAL BE INCLUDED IN TOTAL GROSS WAGES?
Yes, total overtime pay should be included in Total Gross Wages. The auditor is responsible for the credit given for a portion of overtime.
- IF AN OFFICER IS EXCLUDED DOES HE STILL NEED TO BE LISTED ON THE SELF AUDIT REPORT?
Yes, the Self Audit Report should include the total payroll for the company. The auditor is responsible for excluding the exempt officer's payroll from the calculated audit contribution.
- HOW SHOULD OVERTIME BE REPORTED?
Overtime is normally reported at time and a half, however, if your company's overtime is reported differently please state so on the audit form.
- IF I AM EXEMPT FROM THE FEDERAL FORM 940, WILL THE W3 BE SUFFICIENT
For an organization exempt from Federal Form 940, the W3 will be sufficient. However, additional information may be requested by the auditor.
- IF I USE A PAYROLL SERVICE, ARE THERE ANY OTHER DOCUMENTS TO SEND IN LIEU OF THE W3 AND 940
Yes, a payroll report from your payroll service for the time period concurrent with the audit will be acceptable in lieu of your W3 and 940.
- IF I HAVE PAYROLL IN OTHER STATES, WHAT DOCUMENTS DO I SEND
Companies with payroll in more than one state should send each state's UCCR quarterly wage reports along with the Federal Forms W3 and 940.
- WHAT IS THE SIGNIFICANCE OF THE FEDERAL FORMS W3 AND 940
Federal Forms W3 and 940 are extremely significant for processing the audit. These forms are used to balance your audit since they report your total payroll.
- 10. DO I INCLUDE COMMISSIONS IN TOTAL GROSS WAGES?
Yes, total cash received by an employee for commissions and draws against commissions are to be included in Total Gross Wages.
- DO I INCLUDE BONUSES IN TOTAL GROSS WAGES?
Yes, bonuses including stock bonus plans are to be included in Total Gross Wages.
- DO I INCLUDE VACATION PAY IN TOTAL GROSS WAGES?
Yes, pay for holidays and vacations are to be included in Total Gross Wages.
- DO I INCLUDE SICK PAY IN TOTAL GROSS WAGES?
Yes, pay for periods of sickness is to be included in Total Gross Wages.
- WHY ARE MY SUBMITTED FIGURES DIFFERENT FROM THE FINAL AUDIT BILLING?
Generally the difference arises because executive officers of a corporation are charged at a minimum or maximum amount. Also, because a portion of your overtime is deducted from the Total Gross Wages the numbers differ. Feel free to contact the Audit Department for further information if your audit figures do not balance.
- WHICH OFFICERS CAN BE EXCLUDED?
Only officers who have signed an exclusion form accepted by the State of Alabama can be excluded when calculating the audited contributions.