Click here to access the IPAT Pension Plan’s audit procedures.

Note: This post details the audit procedures for the U.S. International Painters and Allied Trades Pension Plan. If you don’t contribute to this plan, check with your local association to review your pension plan’s audit procedures.

The International Painters and Allied Trades Industry Pension Fund (IPAT Pension Fund) has the right to conduct audits of contributing employers at any time. Having information about how these audits typically work may help contractors anticipate potential costs or compliance considerations.

Why Audits Occur

The IPAT Pension Fund conducts payroll audits to confirm accurate reporting and contributions. These audits may take place:

  • Randomly or on a schedule (approximately every three years)
  • For cause (if there are concerns about reporting or missed payments)
  • As courtesy audits (for new signatories, typically six months after signing)
  • As exit audits (when an employer stops contributing due to closing or leaving an agreement)

How Audits are Conducted

Audits may be conducted remotely, in person, or in a hybrid manner, depending on the auditor’s discretion and fund requirements. If a company is related to another construction entity, the audit may be conducted in person.

What Documents Auditors May Request

Auditors may request:

  • Payroll registers, 941s, W-2s/W-3s, unemployment tax returns
  • Job classifications and monthly transmittals sent to the IPAT Pension Fund
  • Dispatch slips and timecards
  • Subcontractor payment records, including 1099s and check registers

Auditors typically compare reported hours and payments with compensation records to confirm contributions and verify that correct rates were used.

Potential Costs and Disputes

Employers are responsible for payroll audit fees/costs, except for courtesy audits if no deliberate errors are identified. If discrepancies are found, employers may be responsible for contributions, interest, and liquidated damages. If the payroll audit is performed by a local fund, cost will be assessed pursuant to the procedures of the local fund.

A draft audit report is typically sent to the employer, who may have 14 days to review and respond with any documentation supporting a dispute before the report is finalized.

Bottom Line

Being aware of these audit procedures may help contractors understand what to expect with an audit and how their standard records may be reviewed during the process. Please click here to get more detailed information on the International Pension Fund Audit Procedures.