Seven Suggestions – Preparing For Workers Comp Audit
I wrote seven suggestions on preparing for Workers Comp Audits.
I have read many guides, manuals, and blogs on how to prepare for a Workers Compensation premium audit. Some of the suggestions were borderline, if not completely illegal. As this story on fraud points out, trying to manipulate the premium audit will only end up costing your company.
My main recommendations are:
- Have everything organized with spreadsheets. Premium auditors are under time pressures. The easier you can make their audit process, the better the results. Handing the auditor a pile of unorganized papers or computer files is never a good idea.
- Follow the audit letter to the nth degree. The premium auditor will send a letter a few weeks before the audit spelling out everything needed for the audit.
- Having someone that is very familiar with your company assist the auditor is advisable. Assign this person to answer ALL of the auditor’s questions and to obtain additional information requested by the auditor. Nothing good has ever come of having many different people meet with the auditor.
- This is a debatable point – there is no requirement that the auditor can leave the premises with copies of any records.
- Ask the auditor to leave a copy of his/her workpapers and background info on the audit. This material is very important if you have questions when the premium audit report and bill is provided by the carrier. Ask for them at the premium audit meeting before the auditor audits your payroll and policy.
- As with any audit, it is best not to argue with the auditor. There is a dispute process if you disagree with the final results.
- Read your Workers Comp policy. This will often answer many questions and clear up any confusion about the audit results.
The subject of preparing for workers comp audits should not be a stressful experience.
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