If you have employees, you have the distinct honor once per year of being part of a worker’s compensation audit.
You likely receive a form in the mail, an email request, or a phone call that will ask you about your payroll numbers and employees for the prior year.
Worker’s compensation is an insurance program that covers employees in the case they get hurt on the job. Each employee receives a classification code that describes the type of work they do, and a rate is figured based on the classification and its risk factors.
Your numbers need to tie back to the numbers reported on your quarterly payroll reports for both state and federal. The provider may also want copies of your 941s and your state payroll reports.
Once you’ve submitted your numbers, the insurance provider will calculate whether they owe you or you owe them additional fees.
The worker’s compensation audit happens every year (even if you pay worker’s comp premiums each pay period, some companies still request an annual audit). It’s not difficult, but it is time-consuming. If you would like our help completing your audit, please feel free to contact us.
This is general information and should not be acted upon without first determining its application to your specific situation. Please contact us, your CPA or tax advisor for additional details.
Successfully meeting the challenges inherent to new and smaller businesses provides me with a special type of satisfaction.