If the Department of Labor were to walk through your door today, would you pass an HR Compliance Audit?

Our team of experts will perform an HR Compliance Audit for violations and risks that could affect your company’s reputation.

Companies operate within a heavily regulated environment, which means that they have to comply with an array of complicated labor and employment laws. Thus, If you are found non-compliant during an audit, this could result in hefty penalties and fines by the Department of Labor (DOL). 

In turn, this is why you would want to invest in proactive measures, such as the HR compliance audit. It is never easy knowing all the laws and when they are updated. We created this solution to keep you aware so that you are ready at any given moment. 

The HR Compliance Audit consists up of three parts:

* DOL Laws are identified that apply to your organization to determine your risk of fines and penalties.

* We evaluate your HR practices to identify missing practices that would improve your culture, morale, and employee engagement levels.

*Identify your current employee morale and engagement levels as part of an employee opinion survey that covers all parts of an active business.

Audits can identify whether your HR department’s process is compliant and active. Therefore, the results of the review identify gaps in the HR department that can prioritize and improve to minimize violations — finally, a useful measurement of maintaining effectiveness in fundamental HR practice areas. 

Compliance Fines and Penalties

Compliance Fines & Penalties
Depending on the compliance violation the Department of Labor (DOL), Internal Revenue Service (IRS) or Department of Health & Human Services (HHS) may impose fines or penalties.  Below are a few possible examples.
Violation                                           Possible Fine                          Department
Failure to provide written requested ERISA plan documents, Summary Plan Descriptions, Summary of material
modifications, etc.
$110 per day up to $549,095DOL
Late 5500 Report$25 per day up to $15,000IRS
Failure to File annual 5500 Report$2,194 per day, with no maximumDOL
Failure to furnish statement of benefits or to maintain records$28 per employeeDOL
Failure to notify plan participants of benefit restrictions and/or limitations$1,632DOL
Failure to furnish automatic contribution arrangement notice$1,632DOL
Failure to furnish employee benefit plan documents to DOL upon request$147 per day up to $1,472 per requestDOL
Failure to inform employees of Medicaid/CHIP coverage opportunities$110 per day per employeeDOL
GINA violation$110 per day per participantDOL
Failure to provide Summary of Benefits Coverage (SBC)$1,156 per failureDOL
FMLA posting & notice violation$173 for each offenceDOL
Allowing premiums to be paid on a pre- tax basis for covered benefits without having either a Premium Only Plan (POP)
document or Flexible Spending Account (FSA) document.
Penalty: Employer can lose the ability to allow premiums on a pre-tax basis.IRS
HIPAA violations$100 to $50,000 per violation up to $1,500,000.DOL or HHS
MEWA – failure or refusal to file a complete or accurate Form M-1$1,597 a dayDOL
Other – This is only a partial list of possible fines and penalties  
Each of the enforcing organizations, DOL, IRS and HHS, have increased the number of auditors and enforcers.  Audits have increased across the county.
We recommend you take steps now to be fully compliant to avoid fines and penalties.

Implementing an Effective HR Compliance Audit

Our team of experts will provide a comprehensive audit of your company’s current HR policies and practices. We will assist you in identifying compliance violations and risks that could affect your company’s reputation and recommend solutions on how to improve them. Thus, becoming a more effective organization.

Registration Information to Sign Up for Services

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