Policy Audits

Audit

Have you ever been confused regarding a request from an auditor? Have you ever had difficulties obtaining the Workers’ Compensation (WC) audit worksheets or understanding them? Have you ever been confused as to why you owe a large audit balance yet you are on a “Pay As You Go” program? Stonehenge was founded with PEO and auditing experience and we can help.  When it comes to audits, consider the following;

Audit Information Requested by Auditor

  • Review the information before sending – make sure your reports are for the proper date range and include information for all operating entities. 
  • Provide the information in a user-friendly manner – this will decrease the possibility of clerical errors

Workers’ Compensation Deductions (most states)

  • Tips – pay close attention to restaurants and other service industries
  • Premium Overtime – separate the time and a half and double time
  • Severance
  • Carve-Outs – provide proof of WC and alert auditor to ensure these wages are excluded

Review of the Audit Worksheets

  • Compare the WC wages to the payroll report supplied – this is an easy way to determine if there was an input error
  • Compare the wages by class code to the wages by class code on the report supplied – this should alert you to any changes made by the auditor

Review of the Workers’ Compensation Rating

  • Experience Modification Factor – compare to policy and current latest issued
  • Scheduled Debits/Credits – compare to policy
  • Manual Rates – compare to policy and payroll templates

Review the Audit Invoice

  • Compare the premium paid to your records to ensure all premiums are applied

These are just some of the more common errors found in PEO audits.  Stonehenge can help you from the beginning to the end of the audit process and work with the carrier to resolve any disputes.

Employee Profile

Ted Werckman started his insurance career as a premium auditor and has over 20 years of auditing experience.

twerckman@stonehengeis.com