Top 10 List of Work Comp Audit Errors
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Are You Overcharged for Workers Compensation?
Separation of Payroll Not Allowed
Number 7 on the top ten list of Workers Compensation Audit Mistakes
- Separation of payroll is not allowed by your work comp auditor.
- For contracting classifications, separation of payroll is allowed when certain specific rules are followed. Basically, separation of payroll is when you are able to split an employees payroll between job classifications which may be more representative of the type of work this employee is completing. Many errors occur when an employer believes they may separate payroll but find out later that they did it incorrectly and that the separation is not allowed on their audit.
- Here's some things you need to know about payroll separation;
- Is payroll separation allowed for my type of company?
- Have I been instructed on how to properly separate payroll on my accounting records?
- Payroll separation may save you significant premium dollars, but it has to be done correctly.
- If an auditor has disallowed your separation of payroll your audit may be incorrect. Typically when separation is not allowed the auditor will dump all your payroll into the highest job classification which can cause your audit to be incorrect.
- A reminder, insurance companies make workers compensation audit mistakes every day!!
- For contracting classifications, separation of payroll is allowed when certain specific rules are followed. Basically, separation of payroll is when you are able to split an employees payroll between job classifications which may be more representative of the type of work this employee is completing. Many errors occur when an employer believes they may separate payroll but find out later that they did it incorrectly and that the separation is not allowed on their audit.
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