Payroll Preparation and the Four-Eyes Review

Research question

How can a small HR team reduce preventable payroll preparation errors? Separate data preparation from approval and make changes traceable.

Methodology

This report uses payroll recordkeeping guidance and internal-control principles to define a minimum review pattern. It does not provide tax or payroll advice.

Key statistic

The U.S. Department of Labor requires employers to keep specified payroll records for covered employees. The practical implication is to design the workflow so records are created as work happens.

Review pattern

The preparer reconciles starters, leavers, time, leave, approved changes, and exceptions. A separate reviewer checks totals and high-risk changes before submission. Both people sign the review log.

Implementation takeaway

Use a controlled change queue, never a last-minute informal message. Escalate missing approvals, unexplained variance, duplicate entries, and requests to bypass the normal cutoff.

Sources

1. DOL FLSA Recordkeeping
2. IRS Employer Tax Guide
3. IRS Publication 15-T
4. NIST Internal Controls
5. GAO Green Book
6. EEOC Recordkeeping Requirements
7. NARA Records Management
8. FTC Protecting Personal Information
9. CISA Cybersecurity Performance Goals
10. SHRM Payroll Toolkit

Payroll preparation support for Philippines-based teams

Need help setting up the admin side of a payroll handoff? See the Philippines-based Payroll Preparation Support service for a starter task list, review points, and client approval boundaries. Review the service scope.

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