Prepare For Premium Audit
Each year, like clockwork, your worker’s comp insurance policy renews. Hello, my name is Michael Stack. I’m the CEO of Amaxx. And I want to use that as a trigger for you to start preparing for your worker’s comp premium audit, just like your IRS tax returns are due on an annual basis. Your workers’ comp premium audit comes on an annual basis as well. And you want to make sure you’re prepared. The tip I want to give you today is to have the time that your policy renews your policy renewal date, as you are red alarms, alarm bells, going off red flags, flying everywhere. We need to start preparing for our premium audit, which is coming within the next 30 to 60 days following our renewal. So it’s coming within 30 to 60 days following your renewal. And if you give yourself that renewal date as the trigger, you’re going to give yourself enough time to be prepared.
Things That You Need to Prepare For
Here’s the things that you need to prepare for this premium audit to make sure that you’re just not paying more than you need to just not paying more than you need to. You’re paying the appropriate amount for the policy that you have. So here’s what you need to do. So your auditor reports from your previous audits, your auditor reports from your previous audit. So that’s one thing that you want to have prepared and take a look at. You’re going to want your payroll records. So your payroll records, you’re also going to want your payroll tax returns, sorry, your payroll tax returns. Again, the idea here of what we’re trying to do is we’re trying to pay the right amount that we should and no more right amount that we should, and no more. You’re going to want your certificates of insurance through your certificates of insurance.
Prepare For Your Certificates Of Insurance
These are for all your subcontractors that you would hire so that you’re just not paying double paying for workers’ comp insurance premiums for them. And then last thing you want to do is have a record of your invoices. So your invoices that separate out your labor and materials, so separate out your labor and materials. So you want a copy of all your invoices. You want your certificates of insurance for your payroll tax returns or payroll records, and your auditor reports use that renewal date as the alarm bells to say, okay, we need to start gathering some of this information because we know this audits come and it’s coming like clockwork. Just like your tax return comes every year. The earlier you start to prepare for this is typically the better you’re going to do. Give yourself enough time, get your documentation ready, have it summarize, have it be ready? And that’s just the easier and more successful you’re going to be during that audit. Again, my name is Michael Stack and I’m CEO of Amaxx. And remember your work today in worker’s compensation can have a dramatic impact on your company’s bottom line, but it will have a dramatic impact on someone’s life. So be great.
Author Michael Stack, CEO Amaxx LLC. He is an expert in workers’ compensation cost containment systems and helps employers reduce their workers’ comp costs by 20% to 50%. He works as a consultant to large and mid-market clients, is a co-author of Your Ultimate Guide To Mastering Workers Comp Costs, a comprehensive step-by-step manual of cost containment strategies based on hands-on field experience, and is the founder & lead trainer of Amaxx Workers’ Comp Training Center, which offers the Certified Master of Workers’ Compensation national designation.
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