The idea of audits of any kind may strike fear into business owners but this needn’t be the case. As long as you maintain accurate records and have the required information to hand, you shouldn’t experience any major difficulties. In this respect, there is no real difference between the types of audit you may experience – from a financial audit to workers compensation audits.
Workers’ compensation audits can be a little different inasmuch as they are used to establish what level of coverage your business needs to have and to establish a rating. You need to be able to provide the auditors with information about how many people you employ, the work they do, what they are paid, and also, whether there is work for your business that you outsource to contractors.
It really is just a matter of accurate record keeping and being upfront about your staffing. Workers compensation audits are a necessary part of establishing your level of coverage. In any case, there’s not a lot of point in withholding or misrepresenting the facts, as it can impact on your coverage. Being underinsured is financially risky and paying for more coverage than you need is just unnecessary. The moral of the story is, get your records organized and maintain them so you are always prepared for an audit of any kind.
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