What are ESI and PF Audits?

• ESI (Employee State Insurance)   and   PF (Provident Fund)   audits are thorough examinations of an organization’s compliance with statutory regulations related to employee benefits under the ESI Act and the Provident Fund Act.
• The purpose of these audits is to ensure that employers are correctly deducting and depositing ESI and PF contributions, maintaining proper records, and complying with all legal requirements.

Why ESI & PF Auditing is Important?

• Regulatory Compliance:   Ensures the company adheres to government mandates regarding employee benefits, avoiding penalties or legal actions.
• Accurate Contribution Calculations:   Verifies that the right amounts are being deducted and contributed to ESI and PF accounts from employee salaries.
• Record Maintenance:   Ensures proper documentation is maintained for ESI and PF contributions, which is critical during government inspections or audits.
• Employee Welfare:   Ensures that employees receive the benefits they are entitled to, enhancing trust and satisfaction within the workforce.

Scope of ESI & PF Auditing Services

1. Verification of Contribution Records

   • Auditors check if the contributions to ESI and PF accounts are accurate and submitted on time, ensuring compliance with statutory deadlines.

2. Employee Coverage Review

   • Ensure that all eligible employees are covered under the ESI and PF schemes and verify proper employee classification.

3. Audit of Payment & Deduction Procedures

   • Auditors review payroll records to ensure correct deductions and matching employer contributions to ESI and PF accounts.

4. Compliance with Documentation

   • Assessment of whether all necessary forms and documentation (Form 3A, Form 6A, etc.) are correctly maintained and submitted to relevant authorities.

5. Inspection Preparation

   • Help the organization prepare for government inspections by ensuring all records and compliance measures are in order.

Benefits of ESI & PF Auditing Services

• Avoid Penalties and Legal Issues:   Ensures compliance with ESI and PF laws to avoid financial penalties and legal actions from regulatory bodies.
• Smooth Inspections:   Audits help businesses be inspection-ready, minimizing disruption during government reviews.
• Employee Trust and Satisfaction:   Ensures employees are receiving the benefits they are entitled to, improving overall employee satisfaction.
• Risk Mitigation:   Identifies and resolves potential non-compliance risks in the early stages, preventing future issues.

Our ESI & PF Auditing Services Include:

• Comprehensive audit of ESI and PF contributions.
• Verification of employee coverage and eligibility under the schemes.
• Review of documentation, including challans, returns, and other statutory records.
• Assistance in rectifying any non-compliance issues identified during the audit.