Are you organized for your workers compensation audits and do you know what they’re all about? It’s no secret that the word ‘audit’ tends to scare people, but as long as you have all the paperwork relating to whatever is being audited, you should be fine.
There are some things about a workers’ comp audit that are a little different to, say, an accounting audit. In the latter case, it is a check of all account keeping for a period to make sure everything is being done as it ought to be done.
There is an aspect of a workers’ comp audit that is like that, inasmuch as all the paperwork relating to your employees will be checked. However, in addition to that, one of the reasons your worker information is being checked is to set the level of your workers’ compensation insurance. To do this, you need to provide the auditors with accurate information about the number of workers you have, a comprehensive list of their tasks, what they’re paid and what, if any, work is outsourced to contractors.
The level of workers’ comp insurance that is set after workers compensation audits dictates the level of the premium you will pay for the coverage. There may be a temptation for some employers to fudge the information in order to achieve a lower premium, but that could backfire if you are caught. As is the case with all audits, it pays to be upfront and give accurate information.
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