Workers’ Compensation Audits: What You Need to Know
Workers’ compensation audits—what are they and what do they mean for your business? Simply, they’re a yearly audit on your workers’ compensation insurance policy. The audit’s purpose is to ensure your business paid the correct amount in insurance premiums based upon the gross wages in a policy period.
We said ‘simply’, didn’t we? Turns out, even at their most basic, workers’ compensation audits can get quite complicated. That’s where LCAF Payroll can help. When you sign up with LCAF Payroll to manage your workers’ compensation policy, our team will completely take care of the audit for you and work with the auditor to ensure everything goes smoothly. That leaves you focusing on what really matters: your customers.
For those that are not aware, all workers’ compensation insurance policies are audited at maturation. As soon as the audit begins, all of the correct reporting should be ready and available. So what can you do to prepare for an audit? The following procedures will help you navigate a workers’ compensation audit:
- Payments Made & Calculated Correctly
Make sure all premium payments were made on time and correctly, as calculated off your payroll numbers.
- Payroll Records Are Accurate
It’s important for your payroll records to be accurate and at hand, so that you can pull up a payroll summary when necessary.
- Quarterly Tax Forms Have Been Filed
Make sure you have accurate and correct quarterly tax forms filed with the state and federal government, as the auditors will use the figures on these forms.
Due to the often-complicated nature of workers’ compensation audits, handling them in-house can prove to be overwhelming. That’s why LCAF Payroll manages the process from top to bottom, ensuring proper compliance and record-keeping throughout the year. With LCAF Payroll, we’ve got you covered. To learn more about our payroll services, give us a call today.