As you are plenty aware, workers’ compensation insurance is quite complex and can be difficult to manage on your own. That’s why it’s important to understand the process of a workers’ compensation audit, and what it could mean for your business.  

 

Our experienced HR professionals are here to help you prepare and understand what to expect during a workers’ comp audit. Let’s discuss.  

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What is a Workers’ Compensation Audit? 

  

During a workers’ compensation audit, an auditor will review all relevant documents and records about the injury or illness claim made, as well as evaluate any potential risk management issues associated with them.  

 

A workers’ comp audit can determine any additional premiums if an employer’s gross wages do not match what they predicted or reported when they purchased the policy, which at times requires an employer to pay thousands of dollars in owed premiums prior to being able to renew.

 

The benefit of pay-as-you-go workers’ compensation is never owing or being owed at the end of the year.

 

These documents include: 

  • Any medical reports 
  • Witness statements 
  • Any other documentation that may provide support for the claim 

 

 

A workers’ compensation audit is used by an insurance carrier to verify
the accuracy of claims filed against a workers’ compensation policy.
If discrepancies are found, you may be required to pay back
some or ALL of the money received.  

 

 

The purpose of the audit is to ensure that the employer is providing adequate compensation to injured workers, as well as ensuring that any risk management measures are being followed.  

 

How to Prepare for a Workers’ Compensation Audit? 

 

Preparing for a workers’ compensation audit is essential to ensure the accuracy of claims filed against your insurance policy.  

 

Start by gathering all relevant documents and records related to the claim. These will include:  

  

  • Detailed job descriptions and general employee information 
  • Names and contact information of owners 
  • Payroll journal 
  • W-2, 1099, and other tax forms 
  • Records of individuals’ earnings, overtime, and bonuses 
  • Insurance records including unemployment insurance 

 

Having a PEO like Vested HR on your side to help guide you through the process and ensure you provide the auditor with the correct information needed can give you peace of mind throughout your audit. You don’t want to make the work even harder for yourself or the auditor. 

 

How Does a Workers’ Compensation Audit Affect My Business? 

 

The purpose of a workers’ compensation audit is to ensure that your business is properly complying with all applicable state and federal laws. If any discrepancies are found, you may be required to pay back some or all of the money received for the claim. 

 

Learn More > What to Keep in Mind During a Workers’ Compensation Case  

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Workers’ Compensation Audit Support  

 

By taking the time to prepare for an audit and proactively addressing any potential risk management issues associated with a claim, you can help protect your business from any unnecessary financial losses. 

 

Remember, you don’t have to handle this all on your own, get in contact with our workers’ compensation experts at Vested HR for the support you need!