When your company’s workers comp plan is underwritten, the premium is generally figured on an estimate of the exposure that will be encountered throughout the next period. Once the period has passed, an annual audit will take place to evaluate what the accurate cost should’ve been. Here are the documents you will need to make your workers compensations audit less stressful.
- Accounting ledger
- Records of cash payouts
- Records of payment for services performed under independent contracts
- Tax forms, including employee federal tax returns and forms 941 and 944
- Records of payments made to subcontractors
- Insurance certificates for all contracted firms and individuals
- Both 1099 and W-2 forms
- Accurate job descriptions for each employee
- Complete description of business operations
- All payroll records for the term
- Rating experience worksheet for the company
In a workers compensation audit, the auditor will look for any differences between the documentation originally used to secure the policy and the current situation. The analysis may determine a credit of over payment or a bill for additional premium owed. Be sure one employee is designated to assist the auditor and provide whatever is requested as efficiently and expediently as possible. This person should be very familiar with the documents and data the auditor will be looking at. With the right people and paperwork in place, the audit should flow smoothly and be completed quickly.