Make it easy on yourself!
Workers Compensation payroll tracking and audit reporting can be a challenge for employers....
Why does it matter?
In New York State every insurance carrier has the right to audit a policy at least every three years; some policies are audited several times a year. During an audit, the employer must provide copies of canceled checks, payroll, general ledgers and other financial information. Employers may be penalized by the New York State Workers' Compensation Board for not maintaining accurate and adequate records at a rate of $1,000 for each ten days that such records are deficient/nonexistent.
Because employers can only estimate the amount of payroll they may have during the forthcoming year, premiums are based upon estimated payrolls. The estimated payroll can often be either much higher or lower than the actual payroll. This results in either a higher or lower premium at the beginning of the policy period. The premium is corrected when a payroll audit is conducted. Upon completion of the payroll audit, the actual payroll figures will be used to determine the proper premium and the employer will either receive a refund or pay a surcharge. Therefore, it is in the employers' best interest to attempt to correctly forecast the amount of the payroll. Please note that if an employer intentionally initially understates payroll, it could be classified as fraud, a class E felony.
For HR One Payentry clients we're able to provide a simple solution.
All that is needed is a copy of the workers' compensation policy declaration page noting your 4 digit workers' compensation codes to be matched with each employees' wages. Once that is received HR One can assist you to provide an accurate workers' compensation report to match wages and codes for a worker's compensation audit. Some employees perform multiple jobs with different workers' compensation codes and employers should have a system to track these accurately. The result could reduce your workers' compensation premium, esspecially if employees are assigned the wrong code.
The first step for this analysis is to send a copy of your workers' compensation policy declaration page to Liz Parkhurst by fax 315-252-9171 or by emailing her at email@example.com
Questions can be directed to Liz at 315-252-9150 ext.307