Start with payroll summaries for the audited policy period. If possible, separate payroll by employee, job duty, and state.
Business guide
Workers Comp Audit Prep
Workers comp audits are a lot less painful when the right paperwork is ready before the auditor asks for it. This guide helps you gather the basics, spot common surprises, and know when to ask CanDo for help.
Quick note: this is a practical prep guide, not payroll, tax, legal, or audit advice. Your carrier or auditor makes the final audit decision, but we can help you get organized and understand what they may be asking for.
Start here
What kind of audit situation are you in?
Choose anything that sounds like your situation. Nothing is required. This just helps us build the most useful prep list.
Your prep checklist
What to gather first
Gather 1099s, invoices, and certificates of insurance for any subcontractors used during the policy period.
Make notes on who does what work. A person’s actual duties can matter more than their job title.
If owners or officers are included, gather owner payroll details for the audited policy period.
The mistakes that get expensive
Three audit surprises to watch for
Missing subcontractor certificates
If a subcontractor cannot prove they had their own workers comp coverage, the auditor may treat some or all of what you paid them as payroll for your audit.
Payroll in the wrong class
When employees do different types of work, class-code questions can change the audit outcome. Keep job duties clear and records organized.
Big payroll changes
If payroll was much higher than estimated, the audit may create additional premium. If it was lower, you may be due an adjustment.
Not sure what the auditor is asking for?
Forward the audit notice, payroll request, or confusing wording to CanDo. We’ll help you understand what to gather and what questions to ask before you send it back.