Below is an illustrative excerpt of a Workforce Risk Assessment, modeled on the issues we typically find at a mid-size home care agency. Names and numbers are anonymized — the format is exactly what you receive.
Seven findings across classification, overtime, and vendor billing. Estimated combined exposure if left unaddressed: $118,000–$196,000, concentrated in two high-severity items. Recommended remediation cost: under $4,000 plus internal time. All fixes can be completed within 60 days without switching payroll providers.
| Severity | Finding | Estimated exposure | Recommended fix |
|---|---|---|---|
| High | Six caregivers paid as 1099 contractors while working set schedules under agency supervision — classic misclassification profile under DOL and IRS tests. | $74k–$120k | Reclassify to W-2; calculate back-tax exposure with CPA; use voluntary reclassification program if eligible. |
| High | Overtime calculated on base rate only — recurring weekend differentials and bonuses excluded from the regular rate of pay. | $28k–$52k | Correct regular-rate formula in payroll system; review 24 months of OT for affected staff. |
| Medium | Office manager classified exempt at a salary below the federal exemption threshold. | $9k–$15k | Raise salary above threshold or reclassify non-exempt and track hours. |
| Medium | PTO accruals not recorded as a liability; payout obligations on separation unbudgeted. | $6k–$8k | Add accrual tracking; align written policy with state payout law. |
| Medium | Payroll vendor billing for HR module and time-clock hardware not in use since 2024. | $3.7k/yr | Cancel unused modules; renegotiate per-employee fee at renewal. |
| Low | I-9 forms stored in personnel files rather than separately; two missing Section 2 signatures. | <$2k | Separate I-9 binder; internal audit and re-verification of the two files. |
| Low | Pay stubs missing employer address required by state wage-statement rules. | <$1k | One-line template change with payroll provider. |
Illustrative sample for demonstration. Your report covers your actual records, with each finding documented, sourced, and prioritized by dollar impact.
Six yes/no questions — the same ones we ask first in every assessment. Answer honestly; nothing is recorded or sent anywhere.