Five Ways To Prepare For Workers Comp Audits
These five Methods For Workers Comp Audits preparation will remove some of the premium audit stress.
If you are a company that is large enough to not self-report your Workers Compensation payroll, you will experience the insurance company audit process. There are many ways to prepare for an audit. I will list five that will make the process smoother for your company and the premium auditor.
1. Organize your payroll using back up reporting to justify all payroll. QuickBooks and any other accounting package will be a great way to provide the premium auditor with concise and organized reports. Making the auditor’s job easier will always increase the accuracy of your Workers Comp premium.
2. Have a designated person to answer all of the premium auditor’s questions. That person should be present the complete time the auditor is at your place of business. This will enable the auditor to receive consistent answers and have a “go to” person for follow up questions or request for more information.
3. Do not have the audit off-site. This is one of the main reasons that we find inaccurate premium audits. Your accountant’s office may not help the auditor with figuring out what you do in your business. A plant tour is usually a good idea.
4. Make sure that all subcontractors are noted and pointed out to the auditor. Certificates of insurance from the contractors your company uses which are provided to the premium auditor will avoid any confusion.
5. Make sure that you obtain all contact information from the auditor before they arrive at your place of business.
There are many other ways to prepare. The bottom line is that your records and reports represent your business to the auditor. Neatness counts.
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