Search results
- Your workers’ comp policy requires audits to verify your estimated payroll. These audits help make sure you’re paying the right amount for the right coverage. Depending on your state, workers’ compensation audits can also be a legal requirement.
www.thehartford.com › workers-compensation › audit
Clearly, complying with a workers’ compensation premium audit is essential—both for your pocketbook and to protect your company. To make the process run smoothly, keep in mind the top six common mistakes to avoid during your workers’ comp audit. 1. Incorrect Payroll Estimates.
People also ask
Do I need a workers' comp audit?
What is a workers' comp test audit?
Are all workers' comp audits the same?
What is a workers' compensation premium audit?
May 10, 2024 · Your workers’ comp policy requires audits to verify your estimated payroll. These audits help make sure you’re paying the right amount for the right coverage. Depending on your state, workers’ compensation audits can also be a legal requirement.
Apr 19, 2022 · In 2019, The Workers’ Compensation and Inspection Bureau of Massachusetts (WCRIMBA) began conducting test audits to “verify the accuracy of audits of payrolls and other bases of premium on policies of workers’ compensation insurance and employers’ liability insurance.”
- Misclassification of Employees. If you misclassify employees, it’s easy for your insurance provider to find out. The fact is, employees with a higher risk of injury on the job incur higher insurance rates, increasing your premium.
- Paperwork Errors. Paperwork errors are often human errors. When you don’t organize and properly file payroll records, you risk not providing your insurance provider with what they need to ensure you get the best policy.
- Not Reporting Subcontractors. The lines can be blurry here. First, let’s differentiate between an independent contractor and a subcontractor. Independent contractor: Usually hired by the client, many independent contractors purchase their own workers’ comp policies to cover lost wages and medical costs.
Nov 7, 2023 · Like an annual doctor’s physical, your workers’ compensation premium audit is meant to check up on the health of your policy every year and ensure you’re paying the right amount for the right coverage. During the audit, your company’s payroll and job classifications will be verified.
What is a workers’ compensation audit, and what do I need to know? As a business owner, you may be asked by an insurance company to review your company’s payroll documents. This is called a workers’ compensation premium audit.
Oct 18, 2023 · Step 1: Schedule Your Workers’ Comp Audit. The first step is to schedule your audit. Please note that this process is usually initiated by your insurer. Generally, six to eight weeks prior to the policy’s expiration, your carrier will notify you that it is time for an audit.
