If a client or insurance agent were asked what their most exciting insurance experience was, chances are that Workers Comp audits would not be among the top ten. A review can be an exhausting and frustrating experience but it does not have to be.
What is a Workers Comp Review?
What exactly is a Workers Compensation Audit and what is the purpose? The workers' compensation premium is initially based on an estimated or estimated annual salary. At the end of the insurance year, the insurance company conducts a review to determine if you have paid the correct premium based on your actual salary. If you did not pay enough, you owe an extra premium. If you have paid too much, you will receive a refund.
What does Paradiso Insurance do to help me with this?
At Paradiso Insurance, it is our job to ensure that our customers receive the best coverage and the best prices. With that comes our audit help. Our audit verification is designed to save money by finding any errors that the operator may have made in conducting the audit at the end of the year.
What we need from you
To review your audit for accuracy, our internal auditor will need your salary reports that coincide with the specific policy period. For example, if your policy runs from 1
The salary report should contain:
- Gross figures for each employee that show if there is any overtime.
- Overtime pay is not included in the total salary to 100% for workers' compensation wages. Two thirds (⅔) of the total overtime salary is used and is called compensable salary.
- Employees must be divided into class codes or departments such as driver, clerk or officer
Our internal auditor will also need job descriptions for each non-driver employee. These descriptions include indicating who is an officer and / or an official who never drives. This is very important because drivers are charged higher rates than clerks.
Checking Net Taxes and Class Codes
Another factor in reviewing your audit is checking the net rates for each class code. Class codes and prices vary depending on the permit. If your company has offices in different states, prices will probably be different for each location. If the tax rates are wrong, you may be overcharged or underestimated and this may have a significant impact on your audit results.
There are several options when it comes to paying your work allowance. Using a pay as you go program can be crucial to ensure that you do not pay more than required and to ensure that you do not owe money after the policy period. There are a couple of programs that we use at Paradiso Insurance to make this work properly. The most important detail in this program is that you report your salary correctly. Underreporting of your salary will be discovered during an audit and will result in you owing money.
What happens if you find an error in the audit?
How do you dispute the auditor's results? Many people do not know that you have that option! In general, when you go through the workers' compensation audit, the insurance company is not looking to save money. In fact, they probably hope you owe more! This is where our unique service comes in. When an audit is complete, if you feel that the end result is not correct, we will review the audit for you. We will need payroll documents and review sheets. We will look through everything carefully and report our results to you. If the audit needs to be corrected, we will contact the insurance company on your behalf. We've had many success stories, from a customer who was told they owed over $ 80,000 and we discovered they owed $ 20,000, a difference of $ 60,000! To a client who was told they owed $ 15,000 but we found out they only owed $ 2,000. To another client who was told that they owed additional premiums when they would actually receive a refund of $ 30,000!
A worker evaluation audit can be a wonderful experience when you receive a refund or learn that you owe less than the auditor stated. This is why it is important to analyze each review so that you do not get stuck and pay for something you do not owe. Although the task of performing the audit can be tedious, it is well worth it and is the reason why we at Paradiso Insurance offer this service to all our parcel delivery customers. Call us today at 860-453-0116 and experience the difference Paradiso Parcel Delivery Insurance.