Payroll compliance has become one of the most challenging aspects of workforce management. As wage laws and reporting requirements continue to evolve, employers and plan administrators face increasing pressure to stay ahead of regulatory changes. Falling behind can lead to costly penalties, reputational damage, and even fiduciary breaches. In today’s environment, compliance is not just a legal obligation; it is a critical component of organizational stability.
The stakes are higher than ever. In the last fiscal year, the U.S. Department of Labor recovered $273 million in back wages for nearly 152,000 workers due to payroll violations. These violations often stem from issues that seem small at first glance but can quickly escalate. Misclassification of employees is one of the most common errors. When workers are incorrectly classified as exempt or independent contractors, employers risk underpaying wages and benefits, which can trigger audits and lawsuits. Incorrect overtime calculations are another frequent problem. Complex rules around overtime pay often lead to miscalculations that result in significant liabilities. Late benefit contributions also pose a serious risk. Delays in transferring contributions to benefit plans can create fiduciary breaches under ERISA, exposing employers and trustees to enforcement actions.
To maintain compliance, employers need systems that are both robust and adaptable. Tracking hours accurately, calculating wages correctly, and ensuring timely benefit contributions require more than manual processes. Regular internal audits are essential to identify discrepancies before they become violations. Staff training is equally important. Payroll teams must understand the latest federal and state wage laws, which continue to change in response to economic conditions and labor trends. For example, several states have recently updated minimum wage thresholds and overtime rules, adding complexity for multi-state employers.
Technology can be a powerful ally in this effort, but only if it is properly integrated with benefit administration processes. Fragmented systems increase the risk of errors and make compliance harder to achieve. Employers should look for solutions that combine payroll and benefits into a single streamlined platform. This approach reduces duplication, improves accuracy, and provides real-time visibility into compliance metrics.
Amalgamated Employee Benefits Administrators offers comprehensive support for organizations navigating these challenges. We are proud to provide one of the most thorough payroll auditing services for multi-employer Taft-Hartley plans. Our audits review contributions made over one to five years for every member, helping recover millions in underreported contributions and ensuring ERISA compliance. The key services we provide include:
- Review of collective bargaining agreements and plan documents
- Collection and analysis of employer payroll records
- In-house or onsite audits covering each year and each contributing member
- Verification of contribution accuracy and participant data
- Support for trustees in demonstrating due diligence and improving contribution accuracy
We deliver trusted, independent audits that protect plans and promote financial integrity.
Payroll compliance is not optional. It is a fundamental responsibility that impacts financial health, employee trust, and organizational reputation. With expert guidance and proactive measures, employers can stay ahead of regulatory changes and avoid penalties. In a landscape that is constantly shifting, having the right partner makes all the difference. By working with Amalgamated, you gain the confidence that your payroll and benefit processes are accurate, compliant, and aligned with best practices. Protecting your organization starts with taking compliance seriously and acting before problems arise.
