What a scary thought, an auditor visiting your office! Don't be afraid, be prepared! Check out How To Prepare For A Workers Comp Audit for FREE detailed information on how to prepare for a workers comp audit!
Getting ready for the work comp auditor can be stressful. But it's a process of necessity. The audit process is the time when all workers compensation accounts are brought to balance. You see, when you buy a workers comp insurance policy, the premium you pay is really just a deposit premium, based on the projected payroll of your business for the next 12 months. Then at the end of the policy period, 12 months, the insurance company will perform an audit on your books to determine just what your actual payroll was then recalculate your premium and adjust out if they owe you money back or bill you if you owe them more money. Simple!
Well it's really quite complicated. So be sure to check out the web page "How to Prepare for an Audit" that's shown above. You'll find some good tips in there that will help make your visit with the auditor a more pleasant experience!
Thanks!
Showing posts with label audit checklist. Show all posts
Showing posts with label audit checklist. Show all posts
Wednesday, June 17, 2009
Friday, March 20, 2009
How To Review Your Own Workers Comp Audit - Checklist for Accuracy
When it comes to workers compensation, one of the thorns in every business owners side is completing the workers comp audit. A necessary step in arriving at a final cost for your workers compensation insurance. But you have to remember, the auditor is not on your side. They work for the insurance company, not you, and their job is to make sure all premium producing charges are accounted for on your policy. So what can an owner do to make sure they're not being overcharged for their workers comp premium? A simple review of your workers compensation audit is the answer.
Do you have to hire someone to review your audit? No. Common sense will take you a long way in verifying the accuracy of your audit. Are there times when you will need help? Yes. Sometimes audits are very complicated and the proof is in the details!
How can you know if there is a problem with your workers comp audit? To me it usually starts with a business owner who has a bad feeling or a gut feeling that their audit is wrong. I've found that most business owners have a good handle on the expenses driving their business and they know when something just doesn't feel right. Sure there are those deep hidden mistakes that go on for years undiscovered, but the recovery audits I've been most successful seem to come from a business owner who questions the accuracy of the audit performed.
Here's a quick check list you can use that may indicate you have a problem:
_______ You received an audit billing much higher than you expected;
_______ You did not receive completed audit worksheets from the auditor;
_______ You were charged for work done by a subcontractor;
_______ Payroll used for your audit was different than supplied;
_______ Credits were removed from your policy at audit.
These are just a few indicators you should use. For a more complete list go to this page: Problem Audit Indicators
I'll have more on how you can check your own audit in future blogs! Thanks!
Do you have to hire someone to review your audit? No. Common sense will take you a long way in verifying the accuracy of your audit. Are there times when you will need help? Yes. Sometimes audits are very complicated and the proof is in the details!
How can you know if there is a problem with your workers comp audit? To me it usually starts with a business owner who has a bad feeling or a gut feeling that their audit is wrong. I've found that most business owners have a good handle on the expenses driving their business and they know when something just doesn't feel right. Sure there are those deep hidden mistakes that go on for years undiscovered, but the recovery audits I've been most successful seem to come from a business owner who questions the accuracy of the audit performed.
Here's a quick check list you can use that may indicate you have a problem:
_______ You received an audit billing much higher than you expected;
_______ You did not receive completed audit worksheets from the auditor;
_______ You were charged for work done by a subcontractor;
_______ Payroll used for your audit was different than supplied;
_______ Credits were removed from your policy at audit.
These are just a few indicators you should use. For a more complete list go to this page: Problem Audit Indicators
I'll have more on how you can check your own audit in future blogs! Thanks!
Subscribe to:
Posts (Atom)