Workers Compensation Payroll Audits

Workers Compensation Premium Audits for Veterinarians

September 4, 2020

Written by Bill Butler CIC, CISR

Certified Work Comp Advisor

Workers Compensation insurance is the one insurance policy that you have the most control over as a Veterinary Practice.  It is also the easiest policy for to have incorrect premiums charged.  In the age of Covid-19 with the fluctuation of practice payrolls preparing for an accurate Workers Compensation audit will assure that you are paying the correct premium.

Below are the 10 Commandments for Workers Compensation Premium Audits.

1. Thou shalt not be unprepared
2. Thou shalt not forget to be there to answer questions
3. Thou shalt not answer any questions that are not asked
4. Thou shalt not forget to review your policies being audited prior to the auditor arriving or calling
5. Thou shalt not forget to do a payroll breakdown – by employee classification and job duty
6. Thou shalt not forget to separate Owner, Officer, Clerical, Outside sales and Drivers payroll; or any other employees that you feel should not be classified into the “Governing” classification
7. Thou shalt not forget to have Certificates of Insurance for “Subs” on hand
8. Thou shalt not forget to have the definitions of Payroll, Sales, Subcontractor Costs etc. “On Hand and Reviewed” before the Auditor or arrives or calls
9. Thou shalt not fail to ask the Auditor to recap the audit findings before they leave or end the call
10. Thou shalt not forget to request a copy of the audit.

Overpayment of Workers Compensation is most often tied to incorrect, incomplete audits or failure to complete your audit when due.  Preparing for the audit by having all the information needed and verified prior the audit being conducted will greatly increase the accuracy of your audit.  With Covid-19 audits are increasingly being conducted over the phone and email and not on site.  Making sure you have all your information at your fingertips at the time of the audit makes for a smoother process and more accurate audit.

With changes in payrolls due to Covid-19, now more than ever some time invested in preparation for your next Worker Comp premium audit can you save you money in the long run.

Butler Vet Insurance has some simple tools and checklists available to assist with your next audit through our Veterinarian Comp System.  For more information Contact Us.