Red Flags That You May be Overpaying On Your Workers Comp Due To Payroll Audit.

The following is a short list of what we have seen in client files nationwide when we perform audits for employers.

After the Audit

• Has your company experienced significant increases in Workers’ Compensation premiums (big audit bill)?
• Has your company incurred charges for uninsured subcontractors or owner-operators?
• Has your insurance company included in your payroll any owner-operator expenses?
• Do your Classification Codes include “all employees” or “not otherwise classified” (NOC)?

Were your Insurance Company’s Workers’ Compensation Audits Conducted:

• More than 120 days after the Policy Expiration Date?
• Via telephone?
• Using 941’s or state unemployment forms?

Did the Workers’ Compensation Auditor:

• Not leave a copy of their Worksheets?
• Ask very few questions?
• Examine very few records?
• Seem to be brief and superficial?

It is a great idea to set aside time to review your Workers Comp premium/payroll audits and bills upon receipt. Ask questions if there is anything that looks out of place or seems to not quite fit with your Workers Comp policy. As the employer and insured, you have the most leverage before you pay the audit billing. Do not ignore the audit bill, as there are specific time limits to raising a dispute or paying the bill without penalty or cancellation.

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