When your insurance company conducts a premium worker compensation audit, it'll raise you for payroll, employee, and/or sales and tax records associated with your business. that is as a result of the premiums on your workers' compensation audit and different forms of tiny business insurance policies area unit supported this data. The insurance company can use the data you give to work out whether or not your premium must be adjusted — up or down.
To make the method quicker and power tool here's a premium audit list of how to remain organized and guarantee you are assembling and submitting the proper info.
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 file names without any special characters. This prevents problems from uploading them to your insurer's portal.
Call If You Need Help
Your nondepository financial institution ought to provide a fee variety that will answer any queries you've got concerning the audit method. do not hesitate to call! It will prevent valuable time and frustration. The premium audit method might feel discouraging, however, it's really quite easy and standardized. It's simply a matter of submitting the requested business data by the point. Staying organized with this premium audit list can solely modify the method.
