Use the audited policy dates
Request a payroll export for the period your auditor specifies. A calendar-year report can differ from the policy period. Keep adjustments and off-cycle runs visible rather than assuming the regular monthly summaries include everything.
Make employee work understandable
Include the requested employee detail, duties and work states alongside payroll amounts. A job title alone may be ambiguous. Preserve the source records behind any allocation and ask the auditor how uncertain classifications should be handled.
Explain differences with a reconciliation
Compare the source payroll total with the requested verification reports. Example: a register totals $120,000 but another report totals $122,000. Record the $2,000 difference, locate the underlying adjustment and document whether it belongs in the audited period. Do not force totals to match.
Keep pay categories separate
Retain available breakdowns for regular pay, overtime, bonuses and other categories. Do not deduct a category merely because another business did; treatment depends on the applicable rules and the auditor’s instructions.
Share a reviewable export
Include the report dates, source system and an explanation of adjustments. Send sensitive employee records only through the agreed secure channel. In Audit Shield, retain the supporting document with the payroll record so the reviewer can trace it.
Carrier guidance
Use your own insurer’s request for the requirements that apply to your audit.
Continue preparing
- Workers Comp Audit Checklist: Records to Collect
- Subcontractor Insurance Audit Checklist
- How to Prepare for a Workers Comp Audit
Create your free launch account to organize your records in Audit Shield.