Workers' Compensation Audit Preparation

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Workers' Compensation Audit Preparation

Workers' Compensation Audit Preparation

by Payroll Resources

A workers’ compensation premium audit is typically conducted at the end of each policy period to verify payroll, class codes, and subcontractor exposure. Insurance companies request this annual review via phone, mail, or in-person by an assigned auditor. 

The Role of Workers' Compensation Audits

Its purpose is to ensure that the payroll and class codes accurately reflect the actual payroll and scope of work during the policy period. Additionally, audits confirm that subcontractors have their own coverage. Failure to provide coverage for subcontractors may result in charges for uninsured payments on your policy during the audit.

Types of Workers' Compensation Audits

  • Physical Workers’ Compensation Audit

– Conducted at your business premises within 60 days post-policy expiration.

– Auditor notifies you via mail or phone and schedules an appointment.

– Tight deadlines: Most insurance carriers require completion within 30 days.

– Failure to meet deadline may lead to a delinquent status and inflated audit bills.

  • Voluntary Workers’ Compensation Audit

 – Completed by mail, with the insurance company sending an audit form within 60 days post-policy expiration.

– Form depicts classification codes from your policy and seeks verification of actual payroll exposures for each class.

– Forms may be confusing for first-time users and may request additional tax reports or related documents.

– It’s advisable to contact the insurance company or agent for assistance to understand the implications of the data provided.

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  • Worker’s Compensation Audit Preparation involves gathering and organizing documentation to ensure readiness for regulatory inspections. By proactively preparing for audits, businesses demonstrate compliance with safety standards and mitigate potential liabilities.
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Streamline Your Workers' Compensation Audit with Payroll Resources

Prepare for your workers’ compensation audit preparation seamlessly with Payroll Resources. Our expert services ensure that you’re fully prepared to navigate the complexities of the audit process, minimizing risks and ensuring compliance. From gathering necessary documentation to organizing records and preparing for auditor inquiries, we’ve got you covered. Don’t let the audit process overwhelm you—contact us today at 205-734-3335 to learn more about how our services can support your business and ensure a successful audit with Payroll Resources.

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