Surprise we are seeing much more aggressive worker’s compensation audits.
We have one client who has received a notice from a past insurance company claiming that they owe $38,000 from nine years ago, the balance is in collections and they never received a prior notice. Nor had difficulty getting WC coverage for those nine years. Something is up with that.
I received another call for a worker’s comp audit company wanting a detailed explanation why a two person company which is seasonal had no wages in a quarter (Jan – Mar) their work is outdoors and not a lot of work happens when it’s freezing and snow is on the ground.
They were also questioning why an off-quarter audit did not match the 941’s better… I don’t know? The 941’s are reported on a calendar quarter, and the audit was from June to June. I would not expect the numbers to match every quarter.
Another insisted on seeing all of the insurance certificates from the outside contractors. So make sure you are collecting those certificates before the work is done and you pay them. Otherwise, you own them and have to pay their WC insurance coverage.
You also absolutely need to have workers compensation insurance if you have employees, IL has a $500 a day fine of non-compliance, with a minimum charge of $10,000.
Work smarter, not harder.