Workers Comp Audit Checklist

Business: ________________ State reviewed: ________________ Policy term: ________________ Carrier: ________________ Policy number: ________________ Audit date: ________________ Audit contact: ________________

• Locate the policy declarations, endorsements, audit notice, prior audit billing, and class-code worksheets.
• Mark the payroll period the auditor requested and match it to payroll reports, tax filings, and bookkeeper records.
• Keep customer contracts that required workers compensation, employers liability limits, or waiver of subrogation with this file.

Create one line for each class code or work group used during the policy term.

Class code or work description: Employee names: Gross payroll: Excluded overtime premium or other adjustment: State worked: Source payroll report: Questions for auditor:

• Export payroll registers for the full policy term.
• Separate payroll by state and by actual work performed, such as field work, shop, office, sales, supervision, and owner or officer pay if included.
• Reconcile class totals to quarterly payroll tax reports and year-end wage reports.
• Save job descriptions for employees whose duties changed during the term.

Use this log for every subcontractor paid during the policy term. Missing proof can be treated as chargeable payroll depending on state, contract, and audit rules.

• Confirm each certificate covers the dates work was performed.
• Confirm the subcontractor name matches invoices and payment records.
• Save state rejection or exemption forms when a subcontractor uses one instead of a workers compensation policy.
• List any subcontractor without proof for auditor review:

• Gather inclusion or exclusion forms and renewal confirmations.
• Match officer payroll treatment to state rules and policy records.
• Flag any change in ownership, title, or election status during the policy term.
• Note questions about minimum or maximum officer payroll for the auditor:

• Write plain-English job descriptions for employees split between field, office, shop, sales, or supervision.
• Keep timesheets, job-cost reports, dispatch records, or supervisor notes that support split duties.
• Mark new hires, terminations, and employees who changed roles during the policy term.

Open items for auditor: 1. 2. 3.

Documents sent:

Audit outcome notes:

• Record any reclassified payroll, uninsured subcontractor charge, or officer-pay adjustment.
• Ask for a written explanation of any change before paying additional premium.
• Save the final audit worksheet and invoice with renewal records.