Tuesday, January 29, 2013

9 Tips For Flying Through A Workman's Compensation Insurance Audit

Depending on your policy anniversary date, it may be time to prepare for your annual workman comp audit. Please find below 9 helpful tips for preparing for your workman's compensation insurance audit. The number one goal is to be prepared and save yourself time and anguish! The audits certainly go by faster when you have all of the information prepared ahead of time.

1. Verification - the auditor will need to verify your business name, address, tax id, and all business address locations.

2. The auditor will need a brief description of your operations.

3. How is the company formed? Is your company a sole proprietorship, partnership, LLC, or incorporated. The auditor will need to know each owner's name, title, duties, and wages.

4. Group your employees into classes. For example, if you own a restaurant the majority of the staff will fall into the restaurant category, but you would want to classify the bookkeeper as clerical. You will want to group their gross payroll into these classes. Then, you will also need to know the dollar amount of overtime that was worked by class as well as the dollar amount of vacation/holiday pay.

5. Did you company issue any 1099s? If no, then you are good to go. If yes, be ready to provide a copy of the 1099 to the auditor as well as a description of the work they performed for you. Also, the auditor will ask if this person has their own workman comp insurance. If they do, you will need to provide the auditor with a copy of their workman comp insurance. If they do not, they will probably be included in your payroll for the audit depending on what function they performed for you company.

6. Does your company own an airplane for company business? If yes, the auditor will determine what additional information they will need.

7. Be prepared to provide the number of full time and part time employees as of the end of the policy period.

8. The auditor will also need to know how many work shifts you have in a given day. In addition, what is the maximum number of employees that would work in a given shift?

9. The auditor would need to know if you have any alcohol sales. This is usually used with restaurants in determining if they should be classified as a restaurant or a bar.

Being prepared is the key ingredient to having a successful and smooth workman's compensation audit.It is a necessary part of running a business to go through these types of audits; however, the more prepared you are then the smoother the audit will go for you.
Related Posts Plugin for WordPress, Blogger...