Sixteen warning signals that your insurance company may have overcharged you on your Workers' Compensation Premium Audit
Unlike IRS audits, most businesses consider the Workers' Compensation Premium Audit a routine business requirement that is conducted annually to ensure compliance with state laws. Regularly, a bookkeeper or administrative assistant with little understanding of Workers' Compensation is asked to get the auditor what he or she needs. Invariably, it is assumed that the audit will be done properly and any findings will be correct.
Yet, with over 600 types of classifications, complex rules regarding excluded remuneration, executive payroll, and subcontractors, mistakes are common. It is very easy, and not unusual, for employers to unknowingly leave money on the table.
Auditors have demanding schedules and most do not have the time, or inclination, to educate clients. The process is set up so that all payroll is assigned to the highest rated code, thus ensuring that any mistakes default to the advantage of the insurance company.
How do you know if you have been overcharged? Here are 16 warning signals that should trigger additional scrutiny: