Follow Us:

R. C. Rulka Human Resources Consulting

Human Resources and Training services

Home HR Compliance Audits


Human Resources Compliance Audits


Whether the HR Department is established or just starting up, a review of HR forms, policies, and procedures is a smart way to ensure legal compliance.  We can set up an HR Department for you, or perform an audit that will let you know where you are doing well and where you need to make some adjustments. If you need help with our recommendations, we will be happy to provide assistance as needed.

What We Do

The HR Audit will include a review of HR forms, hiring practices, I-9s, personnel and benefit files, the performance management system, and federal and state posting requirements.  If you need updated forms, we can provide them.

Many employers don’t realize the potential costs of failure to comply with legal requirements.

For example, did you know that:

  • Every “clerical” error on an I-9 can cost you $110, up to $1100 per I-9?
  • You can self-audit your I-9 forms and make needed corrections, but you cannot use white-out or scratch out entries? Sometimes it’s better to do a new I-9, but you have to retain the incorrect one.
  • If you have a group health plan (medical, and /or dental and/or vision) and you had 20 or more employees on more than 50 percent of your typical business days in the previous calendar year you  are subject to COBRA? Failure to comply with COBRA can cost you Excise tax penalties of $100 per day ($200 if more than one family member is affected) PLUS Statutory penalties of up to $110 per day under the Employee Retirement Income Security Act (ERISA)
  • If you conduct background checks, you are subject to the Fair Credit Reporting Act requirements? The FCRA gives applicants and employees the right to sue businesses when they fail to comply with the FCRA’s requirements. Penalties for a business’ willful noncompliance with the FCRA can be either: 1) the actual damages suffered by the applicant or employee or 2) damages that may not be less than $100 and not more than $1,000 per violation. The applicant or employee will also be awarded reasonable attorney fees. Additionally, in severe cases, a court may choose to award punitive damages that have no set limit.
  • An incorrectly worded offer letter can lead to claims of “promised” employment and compensation?
  • Failure to obtain a resignation letter, even a very simple one, can lead to the employer paying unemployment to an employee who quit?
  • Failure to have the correct posters in place can lead to fines in the thousands of dollars?
  • Incorrectly worded “forms” that you created can lead to the exact opposite result of what you intended?

We can solve all these problems for you so that you can rest easy knowing that your business is in compliance with the law.

Review of HR Forms and Posting Requirements:

  • COBRA Continuation Forms
  • Disciplinary Action Forms
  • Employment Application
  • Employment eligibility verification Form- I-9 Form Immigration and Naturalization Service
  • Exit Interview Form
  • Fair Credit Reporting Act Forms
  • Offer Letters
  • Resignation Form
  • Reference Checking Release Form
  • Tax Forms:  W-4 Federal Income Tax Withholding Allowance/ Exemption Forms and State Form W-4- State Income Tax Withholding Allowance/ Exemption Form (where applicable)
  • Termination Form

Review of Hiring Practices

  • Job Posting policies and procedures
  • Advertising
  • Applicant Tracking (Mandatory for Affirmative Action Plans)
  • Interviewing and Selection Procedures
  • Decline Letters
  • Background Checking and FCRA compliance
  • Drug testing policies and procedures
  • Pre-employment testing
  • Application acceptance/retention polices

Review of I-9s

  • Verification of documents
  • Timely completion
  • Consistency with policies
  • Correct completion of the forms
  • Retention and destruction policies
  • Updating and re-verification

Review of Personnel Files

  • Proper separation of personnel files from benefit files
  • Correct forms in correct files
  • Retention policies
  • File security

Review of the Performance Management System

  • Periodic reviews in place
  • Employee input
  • Supervisor Training
  • Retention of appraisals
  • Uses of performance appraisals (compensation, promotion, training, etc.)
  • Disciplinary procedures

Review of Posting Requirements

  • Federal requirements
  • State requirements

Positive SSL