Auditing Your Open Workman's Comp Files May Pad Your Wallet

Written by on 5/30/2016 3:59 AM in , , . It has 0 Comments.

Put off by the idea of workman’s comp claims audits? You could be missing out on some serious dough. Why? Audits help identify changes that can lower experience modification ratings and potentially reduce premiums.

How does it work?
After your policy expires, an audit can determine your actual exposure. Once completed, the amount owed to you – or vice versa – will be sent via a final audit statement, typically within 5 months of the end of your worker’s comp policy period. There are 2 types of audits, determined by the type and nature of your business:

  • Physical audit
    Completed within 60 days of the expiration of your policy and scheduled in advance.
  • Voluntary audit
    Completed within 30 days of the expiration of your policy, with necessary information submitted by you via mail. (Accuracy is essential, so contact your policy holder if there is confusion.)

Make the process faster - Organize these files for your auditor:

  • Payroll records
    Including tax reports, unemployment reports, and individual earnings records (with overtime separate).
  • Employee records
    Indicating job duties, number of employees, and scheduling.
  • Cash disbursement
    Payments to subcontractors, casual labor, and materials.
  • Certificates of insurance
    For all independent and subcontractors.
  • Operations info
    A detailed business description.

Neighborly auditing advice
Stick to answering only those questions your auditor asks for a faster, smoother process. In addition, be certain to review the auditors work before they leave your office. (No take-home audits or signing incomplete worksheets!) This allows you to review the classification of employees as well as the impact the audit will have on your business.

Workman’s comp claim audits overwhelming you? Minnesota Comp Advisor can help. Contact us today.

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