Audit Prep

The life of a Workers' Comp Policy and the Audit

Quote

You request a quote for a workers comp policy. The price is based on your company's estimated payroll.
It's an educated guess how much you'll pay your employees this year.

Bind

You sign the paperwork and get your certificate of insurance.
Congrats!

Pay

You pay your bill either monthly or on a similar recurring basis, depending on how your policy is structured.
Remember, unless you're using pay as you go, you are paying based on an estimate.

Audit

Time to balance the books.
Since the policy was based on estimated numbers, it's time to double check and settle the difference.
If your payroll was higher than you originally estimated, you'll be billed for the additional bit that wasn't covered.
If your payroll was less than you originally estimated, you'll get a refund check from us for the amount that was overpaid. YAY!

How to prep for the Audit

We work with a team of Auditors who will contact you to set up your company's audit. They will call, email or send information by mail.

They will need the following documents:

• Detailed Payroll Report (separate & total by class/job type and owners) for the life of the policy.
• Department of Revenue Employer’s Quarterly Report
• Employer’s Quarterly Federal Tax Return - 941's
• Payroll Register
• General Ledger
• Profit & Loss statement
• Names and amounts paid to each subcontractor along with copies of Certificates of Insurance or Exemption forms covering the audit period
• Transaction Detail report (this is for 1099s and subcontractors)
• Prior year’s tax returns (this is needed if the other information is not available)