Insights from NPG Audits & Risk Assessments
NEACH Payments Group (NPG), a leader in payments consulting, has analyzed data from payroll clients over the past two years to identify key regulatory challenges in ACH compliance. The goal is to provide insights to help businesses enhance their payroll operations and reduce risks. Key findings include:
- ACH Audits & Risk Assessments: A significant 63% of payroll companies failed to conduct or retain proof of an annual ACH audit, and 70% did not perform ACH risk assessments as required by Nacha. This neglect exposes businesses to compliance violations and potential fines.
- Client Education & Identification: Payroll firms with fewer than 10 employees often fail to educate clients on ACH rules and neglect to include required rules language in ACH Origination Agreements, risking non-compliance and fines. Additionally, these firms often lack a formal Written Information Security Policy (WISP).
- ACH Operations Compliance: NPG’s audit services ensure that payroll companies comply with ACH exposure limits, prenotes, reversals, Notifications of Change (NOCs), and return processing, mitigating operational risks.
- The NPG Advantage: NPG offers tailored guidance and solutions to help clients meet ACH compliance obligations. With over 200 years of combined payments experience, NPG’s expert team supports businesses in maintaining robust compliance programs, reducing fraud, and improving operational efficiency.
By partnering with NPG, payroll companies can enhance their compliance, minimize risks, and ensure long-term operational success. Contact NPG today for a complimentary quote and take the next step towards safer payroll processing.
Click the icon below to download the Risk & Compliance Pitfalls for Payroll Processors Findings