When your workers compensation policy comes to the end of the underwritten period, a workers compensation auditor comes to determine what the actual costs should have been for the period. The word audit tends to bring a sense of anxiety to many, but it doesn’t have to be worrisome. Here are some tips to be prepared for a workers compensation audit.
Have a primary contact the auditor can speak to about the workers compensation policy. This helps streamline the process. The contact should be familiar with the payroll, staff responsibilities and the workers compensation policy itself.
A workers compensation auditor wants to see a ton of accounting documents including tax forms, the ledger, payroll, W-2s, 1099s, subcontractor and independent contractor payments and cash disbursements. Having the accounting documents handy can expedite the process making the audit go as smoothly as possible.
Being a little prepared for the audit ahead of time can make the experience less daunting. After all the workers compensation auditor is there to ensure that the company has the correct amount of coverage for the right price. Most states require workers compensation and it would be costly for the business not to have adequate coverage or dropped from their policy. An audit is just another part of doing business with employees.