7 Tips for Handling a Worker’s Comp Audit

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Every employer is required to have a workers’ compensation policy, and it often requires occasional audits. It’s in your best interest to comply so that your premiums are as accurate as possible. Here are seven tips to make the experience as painless and efficient as possible:

  1. Understand the Process – Before the audit begins, get an overview of the audit purpose, what information will be examined, and what is expected.
  2. Make the Auditors Job Easier – Auditors are busy people on a tight schedule. Do your best to make the audit as smoothly as possible. A happy auditor leads to better audit results. Some things you can do:

    Mark Rowley, Owner
    RandR Payroll Services

  • Be timely and prepared
  • Have all requested information ready and organized
  • Answer basic questions, keep it simple
  • Don’t volunteer extra information
  • Don’t slow the auditor down with questions for your own educational benefit
  1. Have Certificates of Insurance – Make sure to get insurance certificates for any subcontractors that were hired during the policy period. Certificates must cover the period in question and expressly indicate worker’s compensation coverage is provided.
  2. Separate Overtime ­Pay – Any overtime paid to employees should be separated from their regular pay and summarized by job classification.
  3. Payroll Separation – If a single employee’s duties involve work under different class codes, make sure to track the dollar amounts paid by each job classification and not by percentage of time.
  4. Review and Keep a Copy – After the audit is finished, be sure to review the auditor’s work, including the job classification of your employees. Such details can impact your business. After you sign off, ask for a copy of the audit for your own records.
  5. Hire Professional Help –You can hire a pro to help you through your audit. Most companies charge $200 or more for this service. But here at R&R Payroll & Bookkeeping Services, you’ll only pay $39. It’s just one many expert services we offer to our small business clients.

Do you need help with an upcoming worker’s compensation audit? Call us here at R&R Payroll & Bookkeeping Services for a friendly consultation with an expert: (951) 296-0412. Get started today!