In part one of this two-part blog series, we looked at some of the simple basics on human resource audits and their uses in today’s business marketplace. Audits are vital across many parts of the business world, and especially within HR areas where ensuring quality performance and compliance with local regulations is very important.
At WTA Inc., we’re happy to provide numerous HR solutions and services for our clients, from risk management themes to immigration compliance, tax and payroll services, and more. In today’s part two of our series, we’ll shift gears a little bit and look at a more specific question: What are some of the distinct processes or areas of your HR department that might trigger or necessitate an audit? Here are several to keep an eye on.
Documentation is a major part of HR, and it’s also one of the most commonly audited areas. Personnel files are often a large focus during an audit since they document everything from hiring processes and employee roles to compensation and performance data.
Reviewing personnel files can help determine if your organization is keeping accurate records, following proper hiring procedures, and maintaining compliance with all relevant laws and regulations. It’s important to ensure that your personnel files are up-to-date and complete before an audit occurs, as missing or inaccurate information can result in significant penalties.
Timekeeping and Payroll
Another major area of focus for HR audits is timekeeping and payroll. This includes ensuring that employees are being paid correctly and on time, that hours are being accurately tracked, and that overtime is being properly calculated and paid out. Auditors will also often review payroll records to verify that taxes are being withheld correctly and that all required deductions are being made.
Another area that is commonly audited is benefits administration. This includes ensuring that employees are enrolled in the correct benefits plans, that premiums are being paid on time, and that claims are being processed correctly. Auditors will also often review documentation to verify that employees are eligible for the benefits they are receiving.
For many organizations, attendance is a major concern. As such, auditors will often review attendance policies to ensure that they are fair and compliant with all relevant laws. They will also often review attendance records to verify that employees are adhering to the policy and that absences are being properly documented and approved.
These are just a few of the many areas that may be audited as part of an HR audit. By understanding which areas are most likely to be scrutinized, you can help ensure that your organization is prepared for an audit and that all relevant documentation is in order.
WTA Inc. provides a full range of HR solutions to help organizations stay compliant with all relevant laws and regulations. To learn more about our services, contact us today.