Workers Compensation audit process things to prepare yourself -

Path to a successful Workers Compensation audit

Work Comp Audit Process

State quarterly wage and withholding reports (DE-6s), payroll journals, and any previously filed payroll reports for the period being audited.

The premium is based on gross payroll, not net payroll. Gross payroll includes salaries, commissions, bonuses, vacation and holiday pay, sick pay, overtime payments minus the amount paid over the hourly wage, value of gifts, all substitutes for money earned or paid during the policy period including meals and lodging in lieu of wages, automobile allowances, and any amount by which an employee’s salary is reduced to fund a pension or deferred compensation plan.

You will be asked to supply basic information about any subcontractors that you utilize and certificates of insurance. If you cannot provide proof of insurance for these subcontractors the carrier will charge you a premium based on the classes being used

There are some classifications that will allow you to split payroll. See if they are available with your current codes but you must keep separate records on these.

• Make sure that your employees are property classified - if the employee is clerical make sure they get assigned to the clerical class code etc.

• Executive Officers and Partners . If you have excluded executive officers or partners, double check to make sure they are not assigned to a class code and that it does show excluded

• Overtime if somebody who normally makes $20 an hour works an hour of overtime and is paid $30, you would pay premium on the $20 but not the extra $10.

• Severance ... Severance pay is not included in billable remuneration

• Disability payments

• Travel Expenses

• 1099 Employees

• Uniform Allowances

• OCIP or Wrap up policies