Workers compensation audits are performed by the insurance company to determine the final premium for a policy. They are conducted after the expiration of the policy and it’s only after an audit is performed that the insurance company and employer/insured will know what the correct premium for the expiring policy period will be.
There are many individual items that go into the make up a workers compensation audit. Each must be considered for its accuracy as each item may lead to additional cost or inaccurate return. Some of these items include:
- Payroll or remuneration
- Inclusion or exclusion of Owners, Partners, LLC Members and Corporate Officers
- Classification Codes
- Business Operations
- Premium Modification Factors
- Job and Material Processes
- Overtime, Vacation Time, Sick Leave, Prevailing Wages, Temporary Help and more
- Treatment of Subcontractors or Independent Contractors
Just to mention a few!
When do you need help with a workers compensation audit? In my opinion, every employer should have every audit reviewed! Doesn’t it make sense? After all, audits are subject to many rules that an auditor and insurance carrier must follow. Rules that most employers are not familiar with. The insurance company does have the upper hand because they know the rules and how to best take advantage of them, not the employer. And you do not have to be a big company to ask for an independent workers comp audit review. As a matter of fact smaller employers are particularly at risk.
Where can you find help with a work comp audit? There are several good firms out there who conduct independent audit reviews. Did I mention our company? Of course audit reviews are one of the services we provide at WorkCompConsultant.com. I might stay away from ones you find that make unfounded promises and that hype up the idea that you’ll get thousands of dollars back if you let them work over your audit. But use your common sense and find a consulting firm that you can work with and that will help you find the right answers for your problem.
Hope this helps you out!
