• TAX
  • DEDUCT
  • EARN
  • HUMAN

How to audit payroll deductions and taxes with your AI

Connect Paylocity to your AI client. Your agent then pulls the specific data needed to spot payroll errors.

Ask AI about this page

Short answer

How can I use AI to audit my payroll?

Your AI client pulls Paylocity earnings, deductions, and local tax records to find mismatches. You get a clear list of where withholdings or pay amounts don't match your expectations.

Audit outcomes

Where errors are found.

The AI sorts discrepancies into specific categories for you to review.

TAX

Local tax errors

The AI flags where local tax settings in Paylocity don't match the expected rates. You'll see which jurisdictions need a configuration update.

DEDUCT

Deduction mismatches

It identifies employees with incorrect deduction amounts. This helps you spot overpayments or missed withholdings.

EARN

Earnings gaps

The agent compares reported earnings against your internal records. It highlights any discrepancies in base pay or overtime.

HUMAN

Manual review

When the AI finds a conflict it can't resolve with the available data, it marks it for you. You handle the actual correction in Paylocity.

The workflow

What your AI does when the audit starts.

The AI acts as a data auditor, pulling raw numbers and comparing them against your logic.

  1. Pull earnings

    The agent gathers all current employee pay information to establish a baseline.

    get_employee_earnings

  2. Check deductions

    It pulls the specific deduction amounts for every employee to check for accuracy.

    get_employee_deductions

  3. Verify local taxes

    The AI retrieves local tax configurations to ensure the correct amounts are being withheld.

    get_employee_local_taxes

  4. Identify mismatches

    The agent compares the gathered data to find math errors or configuration mismatches.

    get_employee_earningsget_employee_deductionsget_employee_local_taxes

Try it

Copy these to start.

Use these prompts to kick off your audit.

Starting points

These are opening lines. Swap out the specific employee names or tax jurisdictions to match your actual payroll run.

Paylocity Connector

You're all set. Choose your MCP client and follow the setup instructions.

Connector linkhttps://edge.vinkius.com/vk_preview_Q5OFkotVw2MOwNlXg88Kx5uV8PHZ3JpNZ0YLqsc2/mcp

Claude Desktop

Follow the steps below to connect in seconds.

  1. 1In Claude Desktop, open Settings → Connectors.
  2. 2Click “Add custom connector” and paste the connector link above as the remote MCP server URL.
  3. 3Click Add and start a new chat — Paylocity capabilities are ready to use.
Configuration · claude_desktop_config.jsonCopy
{
  "mcpServers": {
    "paylocity-mcp": {
      "url": "https://edge.vinkius.com/vk_preview_Q5OFkotVw2MOwNlXg88Kx5uV8PHZ3JpNZ0YLqsc2/mcp"
    }
  }
}
Copy into chat04

  • Audit the local tax settings for all employees in Chicago.

  • Check if any employee deductions for health insurance look incorrect this period.

  • Compare the earnings for Jane Doe against her expected salary.

  • List all employees who have a mismatch between their local tax configuration and their current earnings.

  • Claude
  • ChatGPT
  • Cursor
  • VS Code
  • Windsurf
  • Claude Code
  • JetBrains
  • Cline

Start here

Connect Paylocity once, then ask.

You only need to link your account once. Your credentials stay encrypted, and you can start auditing immediately in any compatible client.

Connect Paylocity to your AI

FAQ

How the audit behaves

  • 01

    Can the AI change my payroll data in Paylocity?

    No. The AI can only read data to find errors. You must manually make any changes in Paylocity yourself.

  • 02

    Does the AI calculate the taxes for me?

    No. The AI retrieves the tax data that is already configured in Paylocity and compares it to your instructions.

  • 03

    Can I audit a specific employee?

    Yes. You can ask the AI to pull earnings, deductions, or taxes for a single person.

  • 04

    What happens if the AI finds a mistake?

    The AI reports the discrepancy to you. It doesn't fix it; it just tells you where the data doesn't match.

  • 05

    Can the AI delete employee records?

    No. The tools provided only allow the AI to read data, not delete or modify any records.

  • More questions about Paylocity? The Connector page answers them. See everything the Paylocity Connector can do

Connect Paylocity to Claude, Cursor, ChatGPT & more