Prepare for a Workers' Compensation Audit


It is important to have a representative who is knowledgeable about the operations available to respond to questions involving operations, job descriptions, officers/owners and other questions.

Advanced preparation will help the auditor quickly find what he or she needs and will require less of your time for questions and/or clarifications during the actual audit. Doing the following will make your audit as convenient and expedient as possible:

  • Have available your payroll records showing total gross payroll by employee, by company or departments. 
  • Have payroll records show overtime separately. 
  • If you are a contractor, keep a workers' compensation worksheet showing gross payroll by job and classification. 
  • Have in your file certificates of workers' compensation insurance for all subcontractors. 
  • Have available a list of temporary employment agencies used during the audit period, along with the agency’s DWC-09 form. 
  • Have DWC-11-IC forms for all independent contractors filed with the Department of Labor & Training. 
  • Have Business Invoices & General Liability Certificate for all independent contractors. 

All subcontractors and independent contractors that have not provided Beacon Mutual with either a certificate of workers' compensation insurance or a legitimate DWC-11-IC form (and General Liability certificate) will be included in the audit and bill for premium charge.  Beacon Mutual, like the Workers' Compensation Court, may still determine that there is an employer/employee relationship.