HR Audit Checklist Guide
How to Conduct an HR Audit: Step-by-Step Checklist
An HR audit is the point-in-time review that tells you whether your people practices actually match the law. This guide walks through the four phases most small businesses can complete in a week, and pairs with the interactive audit so you can turn findings into a ranked to-do list without hiring a consultant.
- Define the scope: full company, a single site, or a specific area (payroll, I-9, leave).
- Pick the framework: federal + state HR laws that apply at your headcount.
- Assemble the paper trail: employee list, org chart, handbook, policies, and postings.
- Decide who owns each finding before you start collecting evidence.
- Pull a sample of personnel files: offer letters, I-9s, W-4s, acknowledgments, discipline records.
- Export payroll records for the last 2–3 years, including timekeeping data for non-exempt roles.
- Gather all leave requests and approvals (FMLA, state PFML, paid sick, jury duty).
- Screenshot required workplace postings — federal and state.
- Save training completion reports for anti-harassment and OSHA topics.
- Worker classification: run each 1099 against IRS common-law and state ABC tests.
- Wage & hour: verify overtime, minimum wage, meal/rest breaks, and off-the-clock work.
- Recordkeeping: I-9s (3 years post-hire or 1 year post-term), payroll (3 years), medical files stored separately.
- Anti-discrimination and harassment: written policy, complaint process, required training.
- Terminations: documented performance history, final pay timing by state, COBRA notices.
- Score each area: compliant, at risk, non-compliant — with a specific citation.
- Rank fixes by legal exposure and effort, not by how easy they are to do.
- Assign an owner and a deadline to every finding.
- Schedule the re-audit for 6–12 months out, or sooner after a headcount threshold.
- Keep the report — an auditor asking about a prior finding is much friendlier when you have a fix log.
Download all templates
One ZIP with every template in both PDF and DOCX.
1. Audit scope memo
Audit period: [start] – [end] Locations in scope: [sites] Areas in scope: hiring, classification, wage & hour, leave, recordkeeping, postings, terminations Owner: [name] | Deadline: [date] Sample size: 20% of active roster, min 10 files
2. Personnel file pull list
- Signed offer letter and job description
- Form I-9 + supporting docs (stored separately)
- W-4 and state withholding form
- Handbook acknowledgment
- Performance reviews and discipline records
- Leave requests and accommodation correspondence
- Separation notice, final pay stub, COBRA notice
3. Findings tracker
| Area | Finding | Risk | Owner | Due |
|---|---|---|---|---|
| Classification | 3 of 5 1099s fail IRS control test | High | Ops lead | 30d |
| Postings | FLSA poster missing at HQ | Low | Office mgr | 7d |
| I-9 | 2 forms missing Section 2 | High | HR | 14d |
4. Manager interview prompts
- Walk me through how you approve overtime.
- How do employees raise a harassment or discrimination concern?
- What happens between an offer accept and day one?
- How do you document a performance issue before termination?
Use the interactive HR audit as the data-collection step for Phase 2. It scores you across classification, wage-and-hour, recordkeeping, and posting requirements in about five minutes, and exports a ranked findings list you can drop straight into your Phase 4 report.
Informational only — not legal advice. Consult employment counsel for your specific situation.