These tips may help save you time and cut down on some of the errors auditors make on your workers compensation audits:
(1) Make sure your payroll records separate any overtime paid to your employees. Be sure to summarize overtime by the work comp job classifications ahead of time as you enter them in your payroll records.
(2) Be sure to have current certificates of insurance for each subcontractor used during your policy period. When securing certificates, make sure they include workers compensation coverage.
(3) Keep the auditors job simple. Have all the information the auditor requested organized and ready for use. Answer basic questions about your business and records. Don't dump this job off to someone else; if you own the business, you need to answer the questions. Do not volunteer information, just answer what you are asked, no more, no less.
(4) A word of caution. Many auditors prefer to just gather data, take it with them and finish it up on their time. This is never good. You should always have the chance to review the final work before they leave so you are aware of how they classed your employees and how the audit will impact your business. You will be asked to sign the auditors worksheets before they leave. NEVER sign an incomplete worksheet. ALWAYS ask for a copy for your files.