PF & ESIC Audit & Compliance

PF and ESIC laws look simple until you start digging into contribution rules, wage limits, attendance variations, and changing employee details. Most businesses realise issues only when an officer asks for records—or when a penalty notice suddenly appears. At Mantra & Co., Ahmedabad, we carry out PF & ESIC Audits with a focus on practicality: understanding how your payroll works, spotting what’s missing, and helping you avoid unnecessary trouble later.

What is PF & ESIC Audit?

A PF & ESIC Audit is a focused review of your organisation’s payroll, statutory registers, contributions, and employee records to check whether everything matches what’s being filed with PF and ESIC departments. It’s essentially a health check of your compliance system—making sure eligible employees are covered, wages are calculated the right way, and monthly challans reflect actual data.

Objectives of PF & ESIC Audit

• Confirm that contributions are calculated correctly and deposited on time.

• Check whether new or resigned employees have been updated properly.

• Identify overlooked employees or incorrect wage classifications.

• Review statutory documents and registers for completeness.

• Prepare businesses for departmental inspections.

• Ensure payroll structure aligns with regulatory requirements.

Types of PF & ESIC Audit

1. Internal Audit

A proactive review done voluntarily to catch mistakes before authorities do.

2. Departmental Audit

An official inspection carried out by PF or ESIC officers, often triggered by discrepancies or random checks.

3. Payroll Structure Audit

A deeper look at allowances, deductions, inclusions, and exclusions to ensure they meet statutory rules.

4. Pre-Due Diligence Audit

Useful during mergers, acquisitions, or funding rounds where clean compliance history is required.

Key Benefits

• Smaller issues are fixed before they become expensive liabilities.

• Smooth handling of departmental visits or inquiries.

• Improved payroll transparency for both employees and management.

• Reduced risk of legal complications caused by mismatched records.

• Better documentation and clarity for future audits.

• Avoidance of penalties for short payment or non-payment.

Who Needs This Service?

Businesses and professionals who benefit from PF & ESIC audits include :

• Employers with 10 or more employees

• Private limited companies, LLPs, and partnership firms

• Startups hiring rapidly

• Clinics, offices, and professional establishments

• Units with labour-intensive operations (manufacturing, retail, logistics)

• Organisations preparing for funding or expansion

Our PF & ESIC Audit Services Include

• Reviewing employee master data and wage records\
• Checking salary structures and their impact on PF/ESIC applicability
• Cross-verification of challans, monthly filings, and contribution sheets
• Auditing statutory registers and attendance data
• Identifying omitted employees or mismatches in contribution
• Preparing a clear report with corrective actions
• Assisting during inspections or departmental queries

Documents Required

• Payroll sheets and salary registers

• Attendance data and employee master list

• Appointment and resignation records

• PF/ESIC challans and contribution history

• Monthly returns and annual statements

• Bank statements for salary payments

• Any previous inspection or audit reports

Why Choose Mantra & Co. Ahmedabad ?

• We combine legal understanding with practical payroll experience.

• Clear, straightforward explanations without unnecessary jargon.

• Detailed audit reports that actually help you fix issues.

• Transparent pricing and consistent support.

• Ability to identify errors that are often missed by automated systems.

• Hands-on assistance during notices and inspections.

• Familiarity with compliance issues across different industries.

Penalty / Risks of Not Taking This Service

Non-compliance with PF and ESIC laws can become expensive.
Common issues include:

• Interest and penalties for incorrect or delayed contributions

• Liability for back wages or revised calculations during inspections

• Departmental scrutiny and repeated follow-ups

• Employee disputes over missing contributions

• Problems during bank audits, due diligence, or funding rounds

• Legal action in cases of major discrepancies

Frequently Asked Questions (FAQs)