California Workers Comp Premium Audit Guide
A California workers comp premium audit guide showed up in a peculiar place. I came across a PowerPoint(r) presentation and slides from the SCIF (State Compensation Insurance Fund) last week. SCIF functions as the insurer of last resort in CA. The presentation slides (PDF file) can be found here.
The presentation was from earlier this year June 1, 2023. I recommend downloading the PDF file even if you are not a California employer or if SCIF is not your workers comp carrier in California. I rarely recommend carrier-supplied info. This info was worth an article to cover the topic.
Why download it – because it is a nice quick summary of what might reduce your yearly premium audit stress. Yes, the slides may be CA-specific, but the audit process and preparation are very similar to other states.
Any employer with at least $10,500 or more premium will be audited in person or virtually on an annual basis. Virtual audits became the standard during the pandemic nationwide. The virtual audits are a type of hybrid audit.
Required records include all your company’s:
- Payroll bookkeeping records
- Tax returns and forms
- Payroll journals
- Original time cards with start/stop times along with trade performed
- Cash disbursements
- Cash payments
The SCIF download contains links to other sections of its website including Employee/Contractor determination along with other parts. This may not be a full California Workers Comp premium audit guide, but it is a great starting point if you are due for an audit.
