What Information Can The Workers Comp Premium Auditor Examine?

We often receive this question in a phone call from an employer has just been through a Workers Comp audit.  The employer is usually frustrated that the insurance company's premium auditor has asked for so much information. 

According to your Workers Comp policy, the auditor has a right to examine all records that are in a  company's possession. The auditor will usually examine various forms of documents that are the norm for a payroll audit.  However, the auditor can ask for any and all documents they need to finish the audit.  

The best way to proceed is pre-audit planning.  Prepare the same documents that the auditor asked for the previous year and provide those along with an Excel sheet or a QuickBooks summary report.  We never recommend having the audit at an off-site location such as the accountant's or bookkeeper's office as these seem to cause many inaccuracies in the audit as the premium auditor is not on-site.  

If you do not remember what was asked for last year during the premium audit , you will need to provide the work comp premium auditor with all the documents (in a very organized manner) that feed into your audit.  Often, the premium auditor will send a letter requesting certain documents.  If you do not understand what is needed or have questions about the audit, it is best to call or preferably email the auditor before they arrive at your place of business.  Providing organized documents is the key.