Checklist
Global Payroll Audit Checklist: 9 Steps to Ensuring Payroll Accuracy
Global payroll
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Follow our step-by-step audit checklist to keep your payroll compliant
Ensuring compliance and accuracy across multiple jurisdictions is a constant concern for any business with a global workforce—especially when payroll errors or missed regulatory changes lead to serious financial and reputational risks.
Payroll leaders often face rapidly shifting tax laws, complex employee classifications, and manual reconciliations, leading to expensive mistakes.
At Deel, we recognize the pressure international teams feel to maintain precise, audit-ready records amidst worldwide expansion, and we’ve helped thousands of organizations navigate these challenges with confidence and real results. For example, Deel helped DevSavant save 77% of admin time and over $12k in monthly admin costs.
Our payroll audit checklist outlines best practices and expert tips tailored to multi-country payroll operations. By following this approach, you’ll catch discrepancies early, minimize compliance risks, avoid penalties to protect your financial reputation, and unlock seamless payroll performance at scale.
In this guide
This guide breaks down the payroll audit process into nine key steps.
- Determine the timeframe of your payroll audit
- Review employee data
- Validate variable compensation
- Analyze off-cycle payroll
- Review tax withholdings
- Reconcile your payroll
- Ensure compliance with labor and recordkeeping laws
- Report findings
- Identify improvement opportunities
Download the full payroll audit checklist for more insights and tips about how to navigate each step.
Who will benefit from this guide
- HR and payroll leaders: Learn how to stay compliant, run accurate payroll, and streamline global operations.
- Finance teams: Get guidance on building a scalable global payroll audit process to ensure accuracy and prevent costly errors.
FAQs
What is a global payroll audit?
A global payroll audit is the process of reviewing and verifying a company’s payroll system and records. The purpose of a payroll audit is to ensure a company is paying employees correctly and remaining compliant with relevant laws and regulations.
How frequently should I conduct a global payroll audit?
As a best practice, you should conduct a payroll audit at least once a year. Running audits more frequently (such as biannually or quarterly) is beneficial for large organizations with particularly complex payroll processes.
What is global payroll compliance?
Global payroll compliance is adhering to local laws and tax regulations in the countries where your business operates. Different countries have unique laws, and it’s important to stay compliant to avoid late fees, fines, and reputational damage.
What are the benefits of a global payroll audit?
The benefits of a global payroll audit include:
- Detecting and resolving payroll inaccuracies earlier
- Ensuring compliance with local laws and regulations
- Increasing efficiency in payroll operations
- Consistently delivering compliant and timely pay to employees
- Maintaining employee satisfaction
- Preserving data hygiene for sensitive payroll information