Workers comp audit prep checklist generator
Workers comp policies are auditable, your carrier reconciles your estimated payroll against actual payroll within a state-specified window after the policy expires. This tool generates a 10-to-15 item audit-prep checklist keyed to your state's exact audit window, your industry, your headcount, and the class codes you use. Download the list as a .txt and hand it to your bookkeeper.
Generate your workers comp audit prep checklist
State + industry + headcount + your class codes, get a 10-15 item prep list keyed to your real audit window.
Your prep checklist (15 items)
Year-end W-3 transmittal totals reconciled to per-payroll-period payroll register
Overtime hours detail by employee (so the auditor can subtract the OT premium portion, NCCI Rule 2-B-2)
Quarterly Form 941s for the entire policy period
State unemployment (SUTA) wage filings for the policy period
Roster split by class code with each employee's actual job duties listed
Certificates of insurance from every 1099 contractor showing active workers comp coverage
1099-NEC totals per contractor (the auditor will charge premium on uncovered subs)
List of owners/officers with their elected status (included or excluded) and the elected officer wage cap if applicable
Identify your governing class code (the highest-rated code with the most payroll)
Document standard-exception class codes (8810 clerical, 8742 outside sales, 7380 drivers) with payroll separated
Cash bonuses, tips, and reportable taxable benefits, the auditor will add these to chargeable payroll
Current Experience Modification Worksheet from your rating bureau
Pre-audit package emailed to the auditor 7 days before the visit
Written process for disputing the auditor's findings within the state appeal window
Tip-credit documentation if applicable (restaurant industry only)
How this tool works
Every workers comp policy is auditable, that is, the carrier compares your year-end actual payroll to your policy estimated payroll, recomputes the premium, and bills (or refunds) the difference. The audit window after policy expiration is set by state law and varies, ranging from 60 days in Florida-like states to 90-180 days in slower jurisdictions. The tool reads your state's exact window from the rating-bureau filing.
Auditor surprise charges almost always trace to the same four causes. (1) Uncovered 1099 contractors get charged at the policy's highest-rated code. (2) Misallocated overtime premium gets fully charged when the OT premium portion should be subtracted under NCCI Rule 2-B-2. (3) Mis-classified payroll gets reclassified to a higher-rated code at audit. (4) Cash bonuses, tips, and reportable taxable benefits get added to chargeable payroll. Every item on the checklist exists to neutralize one of these.
Industry tuning matters. Construction businesses get extra items for AIA pay-application reconciliation and project-contract review. Trucking and transportation get DOT hours-of-service log items. Restaurants get tip-pool and tip-credit documentation items. Healthcare gets a state-license-roster item to defend the clinical-vs-non-clinical class-code split.
Output is priority-ordered: High-priority items must be ready before the auditor calls; Medium items will surface during the audit; Low items help with edge cases and post-audit dispute support. The downloaded text file is formatted as a checklist with state, industry, headcount, and audit-window all stamped at the top so the file stays self-describing if you save multiple per year.
Frequently asked questions
When does my workers comp audit happen?
Most policies are auditable, the carrier reconciles your final payroll against estimated payroll within a window after policy expiration. The window varies by state, the tool shows your state's exact window inline. The audit may be conducted by phone, mail, or on-site, depending on premium size.
What documents does the auditor want?
Quarterly Form 941s, year-end W-3 transmittal, state SUTA wage filings, payroll register split by class code, overtime detail per employee, 1099-NEC totals with COIs from each contractor, and your owner-officer roster with elected status. The downloaded checklist lists everything in priority order.
What happens if a 1099 contractor lacks a COI?
The auditor will charge premium on that contractor's payment as if they were your employee, applied to the highest-rated class code on your policy. This is the single biggest source of audit surprise charges; collect COIs before the contractor starts work, never after.
Can I dispute an audit finding?
Yes. Every state has an appeal window (typically 60-90 days from the final audit statement). The downloaded checklist includes the appeal-process item. Common winnable disputes: misallocated overtime premium, mis-classified payroll, double-counted bonuses.
Should I do a pre-audit?
For premiums above $25k, yes. A self-audit at month 10 of the policy lets you correct payroll allocation, file COI gaps with subs, and reconcile owner-officer wage caps before the carrier auditor arrives. Most savings come from class-code re-allocation, not new claims behavior.