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WORKERS' COMPENSATION AUDIT
What Is a Workers’ Compensation Audit?
When an employee suffers a work-related injury or illness, workers’ compensation insurance can help. Workers’ compensation can help provide benefits such as:
Wages from lost work time
During a workers’ compensation audit, your company’s payroll will get verified. Audits look at your payroll because your workers’ comp premium is partly based on the amount of compensation paid to your employees over a policy term. The amount paid includes money and benefits your workers have received.
Your premium also depends on job classifications. These classifications help show the amount of risk your workers face. So, if the audit finds job roles have changed at your business, you may receive a different premium.
When reporting your payroll, be sure to include any overtime payments employees receive. This will ensure your payroll record is as accurate as possible.
What Is the Purpose of a Workers’ Comp Audit?
Your workers’ comp policy requires audits to verify your estimated payroll. These audits help make sure you’re paying the right amount for the right coverage. Depending on your state, workers’ compensation audits can also be a legal requirement.
Prepare for a Workers’ Compensation Audit
The best way to be ready for an audit is to always be prepared. You can do this by:
Organizing all your documents
Collecting information you need consistently
Documenting any changes to job descriptions and other business functions as they happen
If you keep these tips in mind, you won’t have to scramble to find key information for your workers’ compensation audit.
If you have any questions about a workers' compensation audit, please call 312.802.8817 or email at email@example.com.