Audit System Manual graphic

[ Audit System Manual- TOC ] [ Ch 1 - Introduction ] [ Ch 2 - Preparing for an Audit ] [ Ch 3 - Conducting the Audit ] [ Ch 4 - Completing the Audit Forms and Schedules ] [ Ch 5 - Audit System Screens ] [ Ch 6 - Miscellaneous ] [ Ch 7 - USDOL - Tax Performance System ] [ Ch 8 - Computer Fundamentals & Hardware ] [ Appendix ]
[ 2.1 - Wages ] [ 2.2 - Payments Excluded from Wages ] [ 2.3 - Employer Payments ] [ 2.4 - Pre-Audit Areas of Review ] [ 2.5 - Assignment Preparation ] [ 2.6 - Audit Letter and Pre-Audit Questionnaire ] [ 2.7 - Verbal Notice of Audit ] [ 2.8 - Appointments ] [ 2.9 - Pre-Audit Interview ] [ 2.10 - Pre-Audit Interview ]

Chapter 2: Preparing For An Audit


comments to: Tax Department

Table of Contents

This chapter familiarizes the Auditor with the Texas employment and wage laws before conducting a TWC tax audit.

2.1 - Wages - Section 201.081

2.1.1   - Discussion
2.1.2   - Payments Actually Received
2.1.3   - Wages Constructively Paid
2.1.4   - Wages Paid in a Medium Other Than Cast
2.1.5   - Tips
2.1.6   - Back Payments Under FLSA
2.1.7   - NLRB Back Payment Awards
2.1.8   - Guaranteed Annual Wages
2.1.9   - Dismissal Payment
2.1.10 - Payrolling or Common Paymaster

2.2 - Payments Excluded from Wages

2.2.1   - Excess Wages
2.2.2   - Exempt Employer Payment Plans
2.2.3   - Sick Pay Plan
2.2.4   - Paid Sick Time
2.2.5   - Third Party Sick Pay
2.2.6   - Cafeteria Plan
2.2.7   - Exempt Funds - 201.082(5)
2.2.8   - Employer Paid Taxes - 201.082(6)
2.2.9   - Non-Cash Payments Not for Business - 201.082(7)
2.2.10 - Payment Without Work Performed - Over 65 - 201.082(8)
2.2.11 - Excess Wages for Multi-State Employee - 201.082(9)
2.2.12 - Supplemental Unemployment Benefits

2.3 - Employer Payments

2.3.1 - No Deduction from Employee's Wages - 204.003
2.3.2 - No Voluntary Waiver of Coverage - 207.072
2.3.3 - Employee Cannot Pay - 207.073

2.4 - Pre-Audit Areas of Review

2.5 - Assignment Preparation

2.6 - Audit Letter and Pre-Audit Questionnaire

2.7 - Verbal Notice of Audit

2.8 - Appointments

2.9 - Pre-Audit Interview


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Texas Workforce Commission  |  Unemployment Tax

Last Revision: May 05, 2011