Almost every business gets audited by their insurance provider for workers’ compensation policy each year. A workers' compensation audit is an evaluation of a business's workers' compensation insurance policy to ensure that the premiums paid accurately reflect the company's risk of workplace injuries and illnesses. The audit process typically involves reviewing the company's payroll records, employee job descriptions, and other relevant information to determine the actual payroll and number of employees covered by the policy.
Answers Must Be Accurate and Complete
It is essential for business owners to take responsibility for ensuring that the questions in the audit are answered accurately and completely. This is because providing incomplete or inaccurate information can lead to underestimating the insurance premiums and potentially put the business at risk for penalties or lawsuits.
Actively Participate in the Process
Business owners should not rely on someone else to handle the workers' compensation audit because they are ultimately responsible for the accuracy of the information provided. While they may choose to work with an accounting professional or insurance broker to assist with the audit, they should actively participate in the process and review the information provided to ensure its accuracy.
Understand the Factors
Taking an active role in the workers' compensation audit can also help business owners identify areas where they can improve workplace safety and reduce the risk of injuries or illnesses. By understanding the factors that impact their insurance premiums, business owners can take steps to reduce their risk and potentially lower their insurance costs in the future.
In summary, the workers' compensation audit is an important process that can have significant financial and legal implications for a business. Business owners should take responsibility for ensuring that the audit is conducted accurately and should work closely with an accounting professional or insurance broker to provide complete and accurate information.
HOW SCHWARTZ IS HELPING SOUTH JERSEY SMALL BUSINESS OWNERS
Navigating these legal changes and what it means for your small business in New Jersey can be one of the biggest challenges you face in the coming years. Fortunately, Schwartz & Associates is already familiar with relevant tax laws and regulations you need to comply with, including the impact of the Biden Administration's new tax proposals. The American Families Plan (AFP) and American Jobs Plan (AJP) will bring with them new taxes on businesses in the coming year, and Schwartz is prepared to ensure your South Jersey business is not only in compliance but maximizing its benefits.
Contact us for more insight into what these changes may mean for your business specifically and what we can do to ensure you're getting the most out of your deductions.