The word audit is not something anyone wants to hear. For most people it conjures up images of frenzied hunting for pieces of paper you know you were meant to keep track of and a general increase in stress levels. A workers compensation audit is usually no different. An audit is an inspection, a verification of the size of your workforce, and your processes and record keeping. As long as you have a thorough system in place and keep it properly updated, you should have nothing to fear.
Think of your workers’ compensation paperwork like an inventory. What do you have to cover, what do you need to be able to lay your hands on easily and what documentation might you need to provide? Assemble anything that relates to workers’ comp in your business and keep it in an ordered filing system, clearly marked.
Things you might need to keep on file include any doctors or hospital certificates, copies of medical bills, records of ongoing payments made to staff while not at work (it counts as payroll), details of your workers’ compensation policy and any paperwork relating to costs due to an employee’s work injury or an incident where there is a claim.
You’ll also need to be able to provide access to information about the number of workers you have (employees and contractors) and the nature of their jobs.
When you are facing a workers compensation audit, the best thing for you to do is contact your insurance agent to discuss what might be needed. They can help you identify the paperwork you need in advance and hopefully relax when audit time comes around.
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