A premium Workers Compensation Audit checklist helps you stay organized and ensure that you're collecting and submitting the right information. Here's what you need to know. When your insurer conducts a premium audit, it will ask you for payroll, employee, and/or sales and tax records related to your business. That's because the premiums on your workers' compensation and other types of small business insurance policies are based on this information. The insurer will use the information you provide to determine whether your premium needs to be adjusted — up or down. To make the method faster and smoother, here's a premium audit checklist of the way to remain organized and ensure you're collecting and submitting the proper information.
Ask Your Insurer for Time-Saving Resources
Most insurers will provide you with helpful resources to make the audit process simpler. This can include a checklist of documents it needs from you, a list of frequently asked questions and even a sample premium audit to help you better understand the process.
Keep a Running To-Do List
Have a checklist of things you need to do and put it in an easy-to-find place, such as clipped to the folder where you're storing the documents and information your insurer wants to see. Check steps off the list once you've completed them. (And be sure to submit documents by the deadline given by your insurer.)
Gather the Right Documents
Your insurer will tell you what information it needs — and that will vary depending on your business, the type of insurance policy being audited, your state's rules, and what information the insurer needs to verify. That said, here's a list of commonly requested information:
- Recent quarterly 941 forms (federal employer tax returns)
- Recent Schedule C tax forms or other income tax forms
Other payroll report records
Details about the company owners, officers, and partners, including names, title, where they work, percentage of stock owned and earnings over the audit period 1099s and certificates of insurance for any independent contractors
- Your company's general ledger or sales journal
- Cash receipts
- Sales tax records
Review Your Documents for Accuracy
Providing incorrect information or even glaring errors can prolong the audit process and require you to resubmit documents. Before submitting any information or documents to your insurer, look them over and confirm that the information is correct.
Store Documents in One Easy-to-Access Place
Gather all the documents and information your insurer requests in a folder so you don't lose track of it. If you're submitting documents to your insurer electronically, make sure to give them filenames without any special characters. This prevents problems from uploading them to your insurer's portal.
Call If You Need Help
Your insurer should offer a toll-free number that can answer any questions you have about the audit process. Don't hesitate to call! It can save you valuable time and frustration. The premium audit process may feel intimidating, but it's actually quite straightforward and standardized. It's just a matter of submitting the requested business information by the deadline. Staying organized with this premium audit checklist will only simplify the process.
