Roberts Insurance Group Blog
Four Things Your Company Can Do To Make Your Next Worker's Compensation Audit A Breeze
If you've been in business for any period of time, you're probably familiar with the audit that comes at the end of your Worker's Comp policy term. Trust me, the only thing a business owner hates worse than paying for insurance is completing the audit.
The main issues companies have with worker's compensation audits is that they require some paperwork and there is always the chance the insurance company will come back after the audit and bill your business for additional premium. Lucky for you, we're very experienced in helping our clients navigate their audits seamlessly and have put together some tips and tricks to implement when it's time for your next audit.
If you follow our 4 tips below, you're next worker's compensation audit will be a breeze:
941 Payroll Taxes
It is very common for auditors to ask for copies of your business' quarterly payroll taxes. They do this to verify that the payroll on your payroll reports matches what was paid to the employees. Before your next audit, be sure to go ahead and pull your company's payroll tax quarterly reports and have them ready to go.
Subcontractors Certificates of Insurance
Any time your company hires someone to do work for your business, you need to make sure they are insured and to collect certificates of insurance for their business. When it comes time for your audit, the auditor is going to ask for copies of these. If you're unable to provide them, then your insurance company is going to charge you for the work they've done for your company. Make sure to collect these as the work is being done and have them easily accessible prior to your next audit.
Job Category Classification
Workers compensation premiums are based on payroll paid for specific occupations. For instance, the premium for $100,000 paid to an office workers will be significantly less than the premium for $100,000 paid to a construction worker. When you are classifying your employees, it is important to make sure you classify them based on their category and not their specific job duty.
It is important that your auditor knows who the company's executives are because there is a cap on the payroll that an executive has to pay for their workers comp premium. If this goes unchecked, there is a very good chance that you business will end up overpaying for the workers comp premium on their executives' payroll.
Following these 4 tips are some of the keys to making sure your next audit runs smoothly. Even if there ends up being additional premium after your audit, there is no need to worry because your agent or broker should be able to negotiate to reduce the balance due for you and your business.
If you would like to discuss any current or past audits for your company, we would love to help over at The Roberts Insurance Group. We've helped companies throughout the state of Georgia navigate current and past audits to help get their premiums adjusted and back on the right track.
You can schedule a time by calling 678-250-8133 or clicking the link below.