What You Need to Know About 4th Quarter Audits to Keep Your Business Compliant?

End-of-year audits are one of the most important practices you can follow for your business. Typically conducted sometime in the fourth quarter, these audits help you to review your regulatory compliance needs from the previous year and draw conclusions about next year’s priorities.   

We understand that navigating fourth-quarter audits can be complex, and there are many things to do.  In fact, many companies have their own internal processes for conducting fourth-quarter audits, but some use the expertise of outside firms or agencies. 

Your business’s needs will depend on the type of organization you run. For instance, if you are a small business owner and do not have an HR department, it is important to ensure that you are still conducting audits. 

The Human Resource USA can provide you with a full end of year audit that will eliminate the confusion and complexity of things that need to be squared away each year.  

We want to help alleviate your stress at the end of the year and bring your attention to anything you may have forgotten about.  

In this post, we will discuss the importance of end of year audits and a list of some things that your business should do to make sure that your audits are done effectively.  The list includes updating tax forms, auditing 1099 contractor agreements and insurance policies, updating documents used for background checks and drug testing, and more!  

The Importance of Fourth-Quarter Audits

Fourth-quarter audits provide value in multiple ways. The audit reviews your business progress over months and ensures that your company's goals and compliances are met. It is also an opportunity to establish a new strategy for the coming months. We see it as ending the year on a positive note by looking at what you accomplished and making decisions on how you can have a fresh start for the new year and quarter one.  

By making sure that your business handles end-of-year audits, you are helping prevent any kind of penalty due to a small oversight. An outside expertise agency or Human Resource (HR) company can help you figure out what your business should be on the lookout for.  

If you want to learn more about topics that HR departments handle to alleviate your worry with meeting regulations, click here! 

7 Ways to Keep Your Business Compliant 

We have constructed a list of various things that your business can do during fourth-quarter audits. This is a small list of several things that you should do.  

1. Update tax forms. 
   • This is essential because tax information can change and if your information is inaccurate, you could receive a significant financial penalty.  
     
     
2. Confirm personal information, like phone numbers, email addresses, home addresses, etc. 
   • This is a house-keeping item you should make sure to do since it can be easily forgotten to do during the year. In addition, information like home addresses can change frequently. Even if retrieving this information can be easy, it is necessary to prevent misinformation.  
     
     
3. Develop the Holiday Calendar for next year.
   • Your standard holiday calendar procedure may already be set in stone, but it is relevant to at least review that calendar to make any additions or adjustments based on company or employee needs. If changes are made that impact on employees in the business, make sure to put out a statement to address the changes, especially if it impacts an employee's PTO.  
     
     
4. Review the handbook for revisions and go over it with your employees. 
   • This is a simple procedure, but it is pertinent because many employees don’t regularly review the handbook unless required to do so. Therefore, revisions can easily be missed if they are not pointed out. By pointing out revisions, you are allowing your employees time to ask questions to make sure the revision is understood and accurately adhered to.  
     
     
5. Update your documents used for background checks and drug testing.
   • Background and drug testing check documentation must follow rules set by the FCRA. If you use outdated or false disclosure forms, you open your business up to a lawsuit.  
     
     
6. Archive Terminated I9’s.
   • Removing I-9 forms for employees that are no longer working for you is necessary to avoid compliance liability and to remove clutter. 
     
     
7. Audit 1099 contractor agreements and insurance policies. 
   • Changes to contractor agreements and insurance policies can happen frequently and if you are not compliant you can face a financial penalty. 
     
     

Changes to contractor agreements and insurance policies can happen frequently and if you are not compliant you can face a financial penalty.  

Fourth-Quarter Audits with The Human Resource USA 

Conducting efficient fourth-quarter audits is one of the most important components of a properly functioning business. We recognize that it is a tedious process and can be a headache especially for small business owners that are handling the audits themselves.  

Updating tax forms, audit 1099 contractor agreements and insurance policies, documents used for background checks and drug testing are all just a small portion of everything that goes into a fourth-quarter audit.  

If your business is looking for a partner to navigate all the aspects of a fourth-quarter audit, HR compliance, or other HR-related matters, then The Human Resource USA is here for you. Our experienced team helps businesses in all industries and sectors discover human resource solutions that work for them.  

Click here to start a conversation with The Human Resource USA now! 

Happy with the difference the Human Resource USA made for your business? Leave us a quick five-star review here!