People liabilities
Employee Benefits & Workforce Obligations
Payroll diligence should extend beyond wage totals to benefits, accrued obligations, classification, leave and commitments that affect post-close cash and retention.
Buyer lens
Rebuild the complete workforce cost and identify benefits or accrued obligations that change after the transaction.
Seller lens
Reconcile plan documents, contributions, accrued amounts and employee communications before the buyer models uncertainty.
Why it matters
- Compensation cost can be understated when benefits and accrued time are omitted.
- Transaction structure can affect continuation and enrollment.
- Informal promises can become retention or employee-relations problems.
Evidence to reconcile
- Benefit plan documents
- Employer contribution history
- Accrued PTO and bonuses
- Classification and eligibility records
- Employee communications