Who This Is For: 

• Businesses with significant payroll expense
• Organisations with high employee turnover
• Companies with manual payroll processes
• Businesses wanting payroll tax compliance verified
• Organisations that have experienced payroll fraud or errors

H2R Audit Sub-Components:

a. Recruitment Audit:

• Headcount authorization process 
• Job requisition approval
• Recruitment procedure compliance
• Employment contract completeness
• New employee documentation and background verification
• Onboarding checklist adherence

b. HR Controls Review:

• Employee master file accuracy and completeness
• Organizational chart to HR system alignment
• Inactive employee identification (ghost employee testing)
• Salary band and grade documentation 
• Leave balance accuracy • Performance record linkage

c. Payroll Audit:

• Gross-to-net calculation accuracy 
• Salary component breakdown (basic, allowances, deductions)
• Payroll change control (new hires, terminations, increments) 
• Bank account verification for salary credits
• Payroll to budget variance analysis 
• Duplicate employee detection

d. SSF Compliance Review:

• Social Security Fund (SSF) registration completeness
• Employer and employee contribution calculation 
• Monthly SSF deposit timeliness
• SSF deposit reconciliation 
• Exempted vs. non-exempted employee classification

e. Employee Benefits Audit: 

• Provident Fund (PF) contribution and deposit 
• Festival allowance and annual bonus compliance 
• Medical and health insurance benefits 
• Leave encashment calculation 
• Gratuity provision and payment 
• Loan deduction accuracy

f. Exit Controls Review: 

• Termination authorization process 
• Final settlement calculation (accrued leave, notice pay, gratuity) 
• Tax withholding on final payment 
• Systems access deactivation upon separation 
• Employee clearance process 
• Final paycheck timing

What We Deliver: 

• HR master file accuracy report 
• Ghost employee test results 
• Payroll calculation accuracy sample testing
• SSF/PF compliance status
• H2R control gap matrix
• Cost per employee analytics
• Payroll improvement recommendations