Keep Good Records, and Keep in Touch
You can help reduce the amount of time and material required during an audit by implementing a few basic organizational and communication practices.
- Submit accurate payroll reports throughout the policy year, using correct figures and classifications.
- Inform us during the policy year if your operations change or if you hire new employees who perform different tasks.
- Keep clear, accessible records, especially for payroll earned in dual-wage construction classifications and third-party projects involving a waiver of subrogation or Owner Controlled Insurance Policy (OCIP).
Get Your Ducks (and Docs) in a Row
We typically request certain records during an audit, including:
- Names and job titles of employees.
- State Quarterly Wage and Withholding Reports (DE 6 forms).
- Payroll journals.
- State Fund payroll reports for the coverage period being audited.
- 1099s issued.
- Certificates of insurance for independent contractors.
Because the information needed for each audit can vary, your auditor may ask you to make other records available. These may include check registers, cash disbursement journals, bonus and commission ledgers, time cards, job cost records, profit-sharing reports, prevailing-wage determination sheets, and federal and state tax forms.