Workers Comp Audit
A workers comp audit is a review of your records to make sure that you have paid the right amount for workers’ comp insurance. The auditor can do this by mail, phone, or in-person.
Workers’ Comp Audit: What Arizona Businesses Need to Know
If you’ve received notice of a workers’ compensation audit, don’t panic. These audits are a routine part of maintaining accurate workers’ comp insurance, and they can impact how much you pay. At Professional Insurance Strategies, we help Arizona businesses prepare for and navigate audits smoothly. You may receive a letter or phone call stating that you are being audited. We help companies across Arizona — including those in Phoenix, Mesa, Glendale, and Scottsdale — prepare for workers’ compensation audits with confidence. Let us review your records, ensure proper classification, and help you avoid unnecessary penalties.
📞 Call us today or request a free consultation.
What is a Work Comp Audit
Your workers’ comp insurance company will give you a form to show what records they want for an audit. Save these records together so you know exactly where they are and can find them quickly.
The other records that will be requested during an audit include: proof of your business registration, proof of workers’ compensation coverage on each employee, payroll records (including gross pay), accident reports (and copies), forms submitted by employees filing injury claims (and copies), medical bills paid by the insurer or employer, and any other documents that might support or refute worker’s comp claims.
The person who reviews these materials will calculate the amount of workers’ compensation owed. They will use the information from the wage report and payroll. Get a workers comp quote
Workers Compensation Premium Audit
If you disagree with the amount that they say you owe, then you can provide extra documents to prove otherwise. If your records are not clear enough, then an audit may be done. This will incur a cost for the auditor who visits your business site.
When an audit is finalized and complete, the auditor notifies both you and your workers’ comp insurance company of its findings. If anything is wrong with what was paid to you or what should have been paid, the auditor will tell both parties how much money is owed. The insurer then sends a bill for payment along with a copy of the audit, and you must make your payment within 30 days.
You will need to pay the insurance company a yearly fee. If the auditor determines that you overpaid, they will refund some of your money. The person who audits your account can be someone from an insurance company or someone who calls on the phone. Usually, state law says that only certain people can do this.
– The director of a state division of workers’ comp or his or her designated representative
– A third party chosen by agreement between both parties
Work Comp Audit Tips
If you are about to have an audit, it’s a good idea to read over your policy and call your workers’ compensation insurer. You can also check with your state insurance department or consult an attorney who specializes in this area to learn what records you should be keeping during the year relative to workers’ comp coverage for your business.
Why hire a workers’ comp audit service? Professional audits give you the chance to find errors and make corrections. You also know that your records are accurate when someone comes to check on them.
An audit is a process of verifying whether employees are meeting the requirements of your state. You can also use an audit to demonstrate that the employer is complying with the laws. An audit can protect you from fines or penalties if they find any problems or discrepancies.
Workers’ compensation audits should be straightforward once you have the proper documents and training. If you are unsure how to handle the audit, you will need to contact your insurance company for assistance. It’s best to hire an attorney who is familiar with workers’ compensation laws before beginning your audit. This way you don’t break any rules.
Professional Insurance Strategies assists companies with their employee payroll. They ensure that if someone is working for you, their salary is accurately listed on your company’s payroll. If it wasn’t, then you might not be paying enough or not at all. You need to do an audit of your previous years, too. That way, you know how much money you should be paying each year and can make sure to pay it on time.
Workers Compensation Audit Subcontractors
Underwriting workers’ comp insurance policies is based on many factors. The state requires that you provide sufficient information to qualify for a policy and show that your company complies with regulations about work conditions. If there are any problems, carriers could deny future applications or cancel existing policies. They may also impose penalties on employers who fail to notify them of changes in work status (such as adding employees) within the required timeframes set by law.
You need to do a workers comp audit of your company to prevent this from happening. Then you can address the issues before they impact your ability to obtain workers’ compensation insurance at a favorable rate.
Professional Insurance Strategies works with companies and people who need to get their work comp audits done. We also help them set the price of their insurance premiums. We can analyze your company’s claims history and loss data, which tells you exactly what you need to pay for workers’ comp coverage based upon your business type and size.
For more information about workers’ comp audits or for help with securing affordable workers compensation insurance , contact Professional Insurance Strategies www.proinsgroup.com today at (623) 463-9000 or email us at ghanson@proinsgroup.com .