b'DAYTODAYINSURANCE SOLUTIONSBrian H. Merriam, CPCU, ARM, AAINo Surprises Surviving your workers compensation auditS ince I last wrote about workers compensa- 2.Confirm the payroll figures for the duration of tion (WC) audits, (Instigate Nov/Dec 2020),the insurance policy term versus what was I have heard a few audit nightmare stories,already showing; that is, did the payroll figures so Im offering the following overview. Remembergo up (resulting in an additional premium that WC is handledthats due following the audit) or did they go similarly to the waydown (in which case a return premium will be taxes are handled:owed to you)? prospectively esti- 3.Provide the auditor with an Excel spreadsheet, mated, retrospec- making certain it balances with your payroll tively reconciled.records. You wont know what your actual4.Highlight any excluded payroll, such as if the payroll and em- executive director is not included in the WC ployee classifica- even though his or her salary would show in tions are until theyour payroll records. year is passed,5.Provide copies of all Certificates of Insurance therefore neitherfrom outside contractors. In the absence of this will you know the actual cost of your WC until theproof, it is likely that their contract costs will be end of the policy year. charged under your WC. Unlike auto or property insurance where you specify the coverage at the beginning of the policy6.Provide copies of quarterly payroll tax returns. year and need to remember to amend it as you7.Provide records from your checking accounts make changes to your fleet and/or your buildingsand general ledger. and contents, WC is broad based and picks up most any exposure you have throughout the year,8.Only provide what is requested and avoid idle even if it wasnt anticipated and revealed to thechatter with the auditor. Be friendly but profes-Brian is area senior vice presi insurance company up-front. At the end of thesional; they are busy and want to use their time dent of The Merriam Group year come the accounting and the potential ofefficiently. A Friday audit may likely entice the a Gallagher company, and theunbudgeted surprises. To avoid the impact of suchauditor to conclude the audit early. official insurance consultant for Citygate Network. The Merriama year-end surprise, here are some suggestions: 9.Ask for a copy of the auditors report, checking Group offers property, casualty,for any differences from what you were expect-auto, directors and officers,1.Know the details of your current WC policy, and workers compensationand make certain the job classifications areing. Its best to catch this before he or she leaves. coverages tailored to the needsaccurate to reflect what your employeesWith proper preplanning, your audit will not of Citygate Network members. You can email Brian atactually do in their regular work functions.result in unwelcome surprises. \x03brian_merriam@ajg.com.58 WWW.CITYGATENETWORK.ORG SEPTEMBER/OCTOBER 2022'