A PSNI spokesman said its enquiries are now complete and "there will be no further police action at this time".
Michael McMonagle: 'No further police action' in wages probe
McMonagle, from Limewood Street in Londonderry, was jailed last year for child sex offences.
The controversy prompted a review of his previous employment arrangements with Sinn Féin and the party's elected representatives.
It found for three months in 2020 he simultaneously held two full-time jobs working for two Sinn Féin politicians - First Minister Michelle O'Neill and West Tyrone MP Órfhlaith Begley - while also working as a party press officer.
The review said Sinn Féin "ought to have known" McMonagle was contracted to work for about 80 hours a week.
It found McMonagle was "likely to have misrepresented his employments and that neither Ms Begley nor Ms O'Neill were aware of this".
Liam McBurney/PA
The matter was referred to the PSNI by the Stormont assembly's chief executive, Lesley Hogg.
In a letter to assembly members in January, she said she was required to report the issue "under the Assembly Commission's Fraud Prevention and Anti-Bribery Policy".
Following the PSNI concluding its enquiries, the assembly was approached for comment.
In January, the first minister said there were "lessons to be learned for everybody" as a result of the Stormont report into McMonagle's employment.
"I think it's been a very useful piece of work, because I think there's lessons to be learned for everybody in terms of how we employ people and actually how that's all fully accountable," she said.
The Sinn Féin deputy leader added: "We were at a time of Covid. It was a very short time in which he did work for me and there was an overlap. But I do believe there are lessons to be learned there of course."