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Workers' Compensation Audit NYC: Save Costs and Stay Compliant

A workers’ compensation audit is an assessment and evaluation of your company’s payroll during the time your insurance provided compensation to a worker for many reasons.

After hiring a new employee, the first thing an employer must do is file for insurance for their workers so that the worker can be looked after in case of any minor or major injury. It also protects the employer from liability as the insurance covers the cost. Most states make it compulsory that an employer do workers’ compensation insurance. Independent contractors and freelancers are usually exempt from this.

The state government can ask any company to show their records and data of any worker’s compensation that they have provided.

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Here’s what workers’ compensation insurance typically covers:

Medical Expenses: Costs for doctor visits, surgeries, medications, and rehabilitation.
Disability Benefits: Income replacement for temporary or permanent injuries sustained at work.
Death Benefits: Financial support for families in case of work-related fatalities.
Job Retraining: Assistance in acquiring new skills for injured workers returning to work.
Liability Protection: Covers legal costs if your business is sued over a workplace injury.

At Tax King Service, we specialize in helping NYC businesses navigate the complexities of workers’ comp audits, ensuring compliance while uncovering potential savings.

Why Do You Need a Workers’ Compensation Audit?

Regular workers’ compensation audits are essential for protecting your business financially. Here’s why they’re important:

Accurate Employee Classification: Misclassifying employees can lead to inflated premiums.
Identifying Overcharges: Ensure you’re not paying for unnecessary coverage or incorrect calculations.
Maximizing Savings: optimize your policy, negotiate better terms, and reduce costs.
Maintaining Compliance: Adhere to NYC’s strict workers’ compensation regulations.
Preventing Surprises: Avoid unexpected premium hikes and financial instability.

Types of Workers’ Compensation Audits

Workers’ comp audits in NYC can be conducted in various ways:

Mail Audit: You receive audit forms to complete and return.
Phone Audit: An insurance representative reviews your records over the phone.
Physical Audit: An auditor visits your workplace to verify records and operations.

Our Specialized Audit Services

At Tax King Service, we offer comprehensive audit services tailored to your specific needs:

Comprehensive Payroll Review: Ensuring accurate classifications and payroll data.
NYC-Specific Compliance: Adhering to local regulations and avoiding penalties.
Premium Optimization: Identifying savings opportunities and negotiating better terms.
Ongoing Monitoring: Continuously monitoring your policy for compliance and cost-effectiveness.

How to Prepare for a Workers’ Compensation Audit

To ensure a smooth audit process, follow these best practices:

Organize Payroll Records: Maintain accurate records of wages, overtime, and commissions.
Review Employee Classifications: Ensure correct categorization of employees.
Document Subcontractor Payments: Keep records of contracts, payments, and insurance certificates.
Track Policy Changes: Report significant changes to your insurance carrier.

Common Mistakes to Avoid During Workers’ Compensation Audits

Any mistake, regardless of major or minor, can lead to increased premiums, legal issues, and reputational damages. Avoid these below-mentioned mistakes to save yourself from big headaches:

Inaccurate Record-Keeping: Missing or incomplete payroll records can result in penalties.
Employee Misclassification: Misclassifying employees as contractors (or vice versa) can raise red flags.
Unreported Subcontractors: Failing to provide subcontractor insurance certificates may lead to additional charges.
Ignoring Policy Changes: Not reporting changes, such as new locations or employees, can lead to surprises during audits.

Why Choose Tax King Service?

Here’s why NYC businesses trust Tax King Service for workers’ comp audits:

Expertise and Experience: Our team has a proven track record in identifying overcharges and optimizing policies.
Personalized Approach: We tailor our services to your specific needs and business size.
NYC-Focused Expertise: We understand the unique challenges and regulations of NYC businesses.
Commitment to Client Success: We strive to provide exceptional service and maximize your savings.

Take the Next Step!

Don’t let overpaying for workers’ compensation hinder your business’s growth. Contact Tax King Service today for a free consultation. Our expert team will assess your specific needs and provide tailored solutions to optimize your policy and protect your bottom line.

The Procedure to Prepare Your Business for Workers' Compensation Audit

Define correct categories

After getting all information about workers' compensation insurance, you must identify workers' responsibilities, so they get the correct amount. Tax King Service helps you take care of this responsibility.

Contact your insurance provider

All insurance providers have their own requirements. Tax King Inc. helps you find your required insurance and identify the documents to submit to the insurance company that suits your business the most.

Start auditing and review

It is where we help you the most. Every business owner must be aware of his business's position, and taking part in the audit process enables you to make it possible. Tax King also reviews to remove discrepancies.

Got Questions? We've Got Answers!

What is a workers' compensation audit?

A workers’ compensation audit reviews your payroll, employee classifications, and records to verify the accuracy of your premium charges. It ensures compliance and may identify areas where you could save on premiums.

What is a premium audit for workers' compensation?

A premium audit for workers’ compensation reviews your payroll, job classifications, and subcontractor payments to verify your premium charges. It ensures you’re paying the correct amount based on actual risk exposure and can uncover potential savings.

What payroll is included in a workers' compensation audit?

A workers’ compensation audit includes all wages, salaries, overtime, commissions, and bonuses paid to employees. It also may cover certain benefits depending on your policy and can include qualifying subcontractor payments.

Who is considered a subcontractor for a workers' compensation audit?

A subcontractor is an independent contractor hired for specific tasks. They may need to be included in the audit if they meet criteria like working under your supervision or using your equipment, depending on state laws.

What wages are included in a workers' compensation audit?

Wages included in a workers’ compensation audit typically cover base salary, hourly wages, overtime, commissions, bonuses, and other compensation. Fringe benefits may also be included based on your policy.