In New York it is mandatory that all employers of at least one person have workers’ compensation insurance in place. It is also a requirement of the New York Compensation Insurance Rating Board that workers compensation audits be carried out. Here’s what you need to know:
•Audits are of employee payroll records for the purpose of determining premiums for workers’ compensation policies.
•Carriers have the right to audit at least once every 3 years.
•While the audit is compulsory, in some cases an employer can provide a premium audit payroll statement or report instead of undergoing the actual audit.
•The records you will need to make available include payroll statements, checkbook and cash book, general ledger, tax returns and certificates of insurance for covered sub-contractors.
•When the auditor visits, a member of your staff will need to be present to provide the documents and answer any relevant questions.
•Employers may receive a fine from the New York State Workers’ Compensation Board if they are unable to provide adequate financial records.
•To help determine the cost of your workers’ compensation, employers are required to forecast their payroll for the coming year. The audit will determine if that figure is correct and after the completion of the audit you will receive either a refund or an additional charge.
Workers compensation audits are a necessary part of your workers’ compensation. Providing you keep accurate and detailed financial records they should be able to be completed quickly and stress-free.
