A payroll audit for Workers comp is actually not a fully accurate term. The term also known as a premium audit. Actually, either term is correct. A payroll audit may also be called a policy audit.
This is also referred to as a premium audit. In Workers Comp the insurer will send an auditor (subcontractor or staff employee) to examine/audit the payroll reported by the insured. The purpose is to determine if the premium is adequate and covers all employees. There are many posts in this blog on payroll or premium audits.
You may find them by using the search box on the right side of the web page. The key to any audit is having data to provide the premium auditor that is concise and complete. The payroll figure accuracy is tantamount to have a successful audit.
Microsoft Excel is always the best way to organize the data into nice spreadsheets. The premium audit department will usually send an audit notice letter approximately one month prior to the audit date.
If you cannot meet the auditor on the proposed date, call the audit department as soon as possible.
Article provided by James J Moore, AIC, MBA, ChFC, ARM. All articles are original content. Check out the full website at www.cutcompcosts.com.