Compliance audits are on the rise, meaning employers need to be aware of pitfalls that could result in penalties and fines.Increasingly, state and federal audits are being conducted to ensure companies large and small are complying with employment laws. Syndeo helps companies get in and stay in compliance.In Kansas, wage and hour audits for exempt/nonexempt classifications are common. Some employers are being hit with large fines and backpay for unpaid overtime for employees who were improperly classified as exempt.Form I-9 audits also are on the rise, which puts companies more at risk for criminal penalties when there is a pattern of compliance violations for failing to verify a person’s identity and employment eligibility.But companies can stay ahead of the curve by performing a series of self-audits. These are steps businesses can take to be proactive and prepared should an actual audit take place. Violations likely bring about significant financial implications for companies and could be particularly detrimental for small and privately owned businesses.Here are five of the most important human resources self-audits a company should do.
These should be part of a company’s overall risk assessment strategy.The Society for Human Resource Management (SHRM) has compiled an audit checklist for employers to reference.I-9 scrutiny increases Of the five most important HR audits, I-9 documentation is getting the most attention amid an increased push for immigration regulation.The U.S. Immigration and Customs Enforcement (ICE) has upped its I-9 scrutiny in recent years, serving thousands of audit notices to businesses across the country. For example, the agency issued more than 5,000 I-9 audit notices in the first half of 2018 alone, according to the ICE website.That agency wants to ensure businesses are complying with existing law. I-9 audits coupled with fines for violations are ways ICE ensures businesses are compliant.The goal is to crack down on employers that knowingly break the law, the organization says.Willful and repeat violators are hit with fines ranging from hundreds of dollars to thousands of dollars per violation. Those organizations also could face criminal penalties and civil fines.Learn more, Form I-9Syndeo can helpStaying on top of all of these self-audits can be challenging for employers, but they aren’t alone.Using Syndeo as an outsourced employer services provider is a way for employers to offload compliance audits.Syndeo conducts self-audits on the employer’s behalf, alerting them to any potential compliance issues and making recommendations on necessary changes that need to be made.More information about the human resources services Syndeo provides is available online.Contact us to learn more about how we can help your business.About us: As the Heartland’s leading employer services company, Syndeo partners with local business owners to help them minimize risk, improve efficiency and maximize profitability allowing them the freedom to focus on growth and fulfilling their mission. Syndeo fulfills its mission by taking on all of the HR responsibilities for our clients’ workforce, including employee relations, benefits, risk management and payroll.