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Audit Armor:

Mastering Workers' Comp and Avoiding Audits with Mainline Insurance's Expert Insights

Navigating workers’ comp insurance can be a daunting task, especially when the risk of costly charges or adjusted premiums looms overhead. At Mainline Insurance, we specialize in workers’ comp insurance and offer expert advice to help you avoid common mistakes.

Understanding Workers’ Comp Audits

A workers’ comp audit, much like other year-end processes, ensures the accuracy of your small business operations. This government-mandated program aims to provide benefits to workers injured or ill on the job, ultimately benefiting both your business and employees. Mainline Insurance, as your dedicated insurance provider, conducts thorough audits of your payroll records and financial statements.

Navigating the intricate landscape of workers’ comp compliance is challenging, considering the variations in state laws that impact premiums. Mainline Insurance provides a free and in-depth education to equip you with the knowledge needed to remain compliant.

Common Audit Mistakes and Solutions

  1. Misclassification of Employees

  • Mistakes in employee classification can lead to increased insurance rates. Mainline Insurance emphasizes the importance of accurate classification, providing resources such as the National Council on Compensation Insurance (NCCI) list to guide you.

  • Take advantage of our expertise to ensure that your business is classified correctly, preventing overpayment or penalties during audits.

 

  1. Paperwork Errors

  • Human errors in paperwork can result in underreporting payroll, affecting your premium. Mainline Insurance advises meticulous record-keeping to avoid such pitfalls.

  • Stay organized and inform your insurer of any changes promptly. During audits, accurate records become crucial in determining the appropriate premium adjustments.

 

  1. Not Reporting Subcontractors

  • Differentiating between independent contractors and subcontractors is essential. Mainline Insurance emphasizes the need for subcontractors to have their own policies.

  • Collaborate with Mainline Insurance to ensure subcontractors have valid insurance certificates, preventing your business from incurring additional premiums.

How to Avoid Workers’ Comp Audit Mistakes

  1. Always Be Prepared

  • Actively participate in the auditing process by organizing documents and staying transparent with Mainline Insurance.

  • Regularly update information, especially when hiring contractors and subcontractors, to build trust and prevent surprises during audits.

  1. Create a Workers’ Comp Audit Checklist

  • Develop a checklist to track changes and necessary documents, covering employee information, payroll details, certificate verification, and descriptions/class codes.

     

  •  Mainline Insurance will help you create an effective checklist and provide you with advice so you feel well-informed.

  1. Partner With a Local Payroll Company

  • Mainline Insurance can offer a streamlined solution by connecting you with local payroll experts who understand state regulations and can guide you through employee classification.

Be Ready For a Workers’ Comp Audit

Preparation is key to avoiding mistakes in the workers’ comp audit process. By partnering with Mainline Insurance and following best practices, you can keep meticulous records, stay compliant, and ensure that your premium accurately reflects your business operations. When you avoid both overpayment and underpayment, you’ll be well-positioned to allocate resources strategically and drive growth in your company. Call us today to take advantage of our FREE, full in-depth education on how to avoid payroll audits in the future.

Let Mainline Insurance help give you peace of mind as you go about working hard. 

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