The mere mention of a workers’ compensation audit is enough to strike fear in nearly any business owner.  For anyone who is scheduled for an audit, there’s no need to worry. With a little bit of common sense and preparation, unnecessary aggravation can be speared.

First it’s important to devote a few hours to preparing.  This small step can prevent days, even weeks of hassles in the future. As a business owner you should plan to give your full attention to the auditor throughout the process which can take several hours. Because of this, it’s important to make sure the time and date of the audit is convenient.

Start collecting and organizing records that show payroll reports and overtime.  Make sure insurance certificates and classification divisions are also available.  Write a summary of each one to make explanations easier and to effectively communicate with the auditor.  The auditor may feel more comfortable in trusting a business owner’s data if all calculations can be reconciled to payroll records.

Prior to the meeting with the auditor, it’s also important to make any necessary adjustments to payroll.  You should also make sure you understand all employee job classifications and can explain them clearly to the auditor.  You should also ensure employees are properly classified for the work they perform.  Auditors usually ask about duties and classifications for multiple employees, so being prepared is essential.  For help with the classification process feel free to give us a call at The MVR Agency.

When working with subcontractors, keep in mind that payments made to them will go against workers’ compensation if they didn’t have certificates.  Ask for copies of their certificates and check them to ensure they are updated and show coverage for the entire time span when the subcontractor was working. Most business owners are surprised to find that auditors are not the mean individuals they are pictured to be.  Most auditors are pleasant and fair, and this is especially true when all of the details are in order.

After the audit is finished, politely ask the auditor for a copy of the worksheet. We are also capable of reviewing it for accuracy. Every person has a legal right to request a corrected audit if any errors are suspected or confirmed.  Business owners also have the right to recover any over-payments that were made under the previous three audits.