San Diego Business

Accounting Solutions a "Non" CPA Firm

Fraud Investigation and Prevention

Internal Audit Control:  Many Companies do not have the correct if not any Internal Audit Control procedures in place.  This safeguard problem enables many different types of Asset Misappropriation inside as well as outside the company.  Depending on the size of your company, and Internal Audit Review can take as little as 10 hours to hundreds of hours.  Upon the completion of your company's Internal Audit Review, we will provide an in-depth report on our evaluation of the system in place and make suggestions to implement the Control changes required to safeguard your business operation.  If you are interested in having an Internal Audit Review performed please contact us for a initial consultation. 

Fraud Investigation: If you have reason to believe that Fraud has occurred within your business whether it is due to Employee Embezzlement, Asset Misappropriation, Bribery or Conspiracy and need an investigation please feel to contact us to review your concerns and options.

Trust /Estate Fraud: If you are concerned that your Trustee, whether it is your Accountant or an Appointed Bank or Third party  has not properly handled your trust fund account and need an investigation on the distribution of money, please contact us for a consultation.

Workers Compensation:  Depending on which side of the Workers Compensation complaint your business is fighting, generally the employee related frivolous claim is investigated directly with the Workers Compensation Carrier.  My concern is for the small business owner who after his or her annual audit, an incorrect evaluation has been calculated on the Premium Due.  Not being able to understand where the Carrier calculated their totals from, if you are unsure and feel that your End of Year premium due is substantially more than you thought would be due, we can review and negotiate with the carrier the actual and corrected liability or even refund.  If you feel that you have paid in the correct amount, and the carrier is billing you for additional workers compensation due, in order to investigate your claim, you must be accurate in your Job Classification coding as well as the original Workers compensation contract that you signed.  Your Job Code Classification must be able to be backed up with Time Cards and Job Descriptions.  Many times, having an inadequate Accounting system in place will hinder your ability to prove what your deductions and classifications are.

Payroll Leasing Companies:  If you hire a payroll leasing company because you can not afford Workers Compensation Premiums, make absolutely  sure that the Workers Compensation policy is approved for the State you are in.  You can be held accountable and liable for failure to provide and pay workers compensation in your state.  Also, this is the most important part with a Payroll Leasing Company.  There are companies that will promote the "Lower" Workers Comp rates as well as offering to process your payroll for pennies compaired to a payroll service.  The contract will show a per check charge, your workers comp rate, etc., what they don't tell you is that there is a HIDDEN fee of usually between 3-5% in the Payroll Taxes.  The Sales Reps are telling the business owner that Payroll Taxes are 15%.  The company's portion of payroll taxes are 7.65% for FICA and Medicare.  State and Federal mandated Unemployment Insurance has a cap of $7,000.00.  Example:  If Futa (Federal Unemployment) is .08% of each employee the business has, it stops calculating when that employee earns $7,000.00, so the maximum amount due to the IRS would be $56.00.  State Unemployment varies depending on how many employees you terminate.  A general idea would be an average of 3.4% for State Unemployment.  The same $7,000.00 maximum applies here too, so the Company's liability for State Unemployment for the year would be $238.00.  I will give you an Example of what the hidden fee does to your payroll liability.

Estimated Employee earnings:  Three Employees earn $8,000.00 per month.

Total Payroll = $8,000 x 3 = $24,000.00

Total FICA/Medicare =        x 7.65% = $1,836.00

Total FUTA  7,000 x 3 =     $21,000.00

Total Futa                              x .08% = $168.00

Total SUICA  7,000 x 3 =  $21,000.00

Total SUICA                         x 3.4% = $714.00

Total Company Liability =   $2,718.00

Leasing Company Payroll

Total Payroll = $8,000 x 3 = $24,000.00

Payroll Tax Liability               x 15% = $3,600.00

Difference in hidden liability  =  $882.00 per month. 

Once the $7,000 max has been met and the Futa and Suta above has been paid in full, the new hidden liability jumps to $1,764.00 per month.  Over 12 months that will cost you over $21,000 for a Payroll Leasing Company to process your payroll.  They say it's a wash out in what your Workers Comp rate would be without bundling it, however the cost is hidden and when you call dime on the company for these taxes, now it's called an Administrative fee.  Make sure you read your contract and review ever fine line before you enter into an agreement that will make you wonder why you are having a hard time meeting payroll every week. 

Fraud/Investigations
Bookkeeping
QuickBooks Set-Up
Tax Preparation
Monthly Financials
Financial Plans
Incorporating