Steps After Failed Audit
A Workers’ Compensation audit can be a stressful time for business owners, especially if the audit reveals risks. If you’re a business owner, here’s what to know about navigating audit errors.
The Basics of a Workers’ Compensation Audit
A Worker’s Compensation audit is a process carried out by insurance companies, with the goal of verifying the accuracy of premiums paid by employers for their Workers’ Compensation coverage. During this process, they’ll also determine if the paid premiums align with the exposure to risks, and if the business is accurately categorized based on the nature of the industry and the level of risks associated with that industry.
During an audit, there are many areas that can cause challenges for your business. Some of the most common audit errors include inaccurate payroll reporting, compliance errors, misclassified employees, and failing to report injury claims.
If your business has errors during an audit, it can lead to many complications for your business, including fines, penalties, a lapse in Workers’ Compensation coverage, and an increased risk of workplace accidents.
The Next Steps After Audit Errors
If an audit reveals risks and errors around your business, it’s important to take immediate steps to address and remedy the issues.
Step One: Review the Findings
After your audit, the auditor will provide you with reports and findings. Carefully review the findings, with a focus on areas where you need to improve.
Step Two: Ask Questions
As you review your audit reports, be sure to reach out to your Workers’ Compensation insurance provider with any questions or areas where you need more details or clarity. It’s important to ensure you fully understand the issues and their causes, as they will help you address and prevent them.
Step Three: Correct the Errors
Once you’re knowledgeable about what caused the issue, take swift and thorough measures to correct them. For example, you might review your payroll processes if you had misclassification errors, or strengthen your workplace safety training programs. If your audit errors are the result of compliance issues with any state, federal, or industry regulations, this is also the time to ensure compliance.
Step Four: Create a Plan
To prevent the same issues from occurring again, come up with a strong plan for improving and encouraging safety at your workplace. This might mean steps like creating employee handbooks, implementing new employee training, or improving your injury reporting policies.
Getting Audit Help
It can be difficult to navigate an audit, especially if you are a business owner in a high-risk industry or dealing with other factors, like multi-state risks or previous audit issues. At Work Comp Business Insurance Solutions, we understand these challenges and offer a suite of products to help business owners, including assistance with risk management and Workers’ Compensation coverage.
At Work Comp Business Insurance Solutions, we help business owners find the best Workers’ Compensation and payroll solutions.To learn more about our services and how we can help your business, visit us online at https://www.wcbis.com.
