Audit – Quick Tip

A small business may, on occasion, receive an official request from a state or federal agency to review the company’s books. But one agency that is often overlooked when it comes to audits is the insurance agency.

Your workers’ compensation provider will likely request a payroll audit upon each annual renewal or new premium application. In addition to the basics, such as the total gross payroll and number of employees, copies of quarterly payroll reports will need to be provided. The missing documents that often send the preparer of an audit scrambling are certificates of insurance from subcontractors.

To stay ahead of the game, request and receive certificates from subs prior to the start of a job. Track policy expiration dates of all subcontractors if their services are used repeatedly. Including certificates of insurance from outside service providers in your audit will save your company a considerable amount of money.

Preparing for a payroll audit doesn’t need to be a source of stress. Keeping a filing system throughout the year to document all labor disbursements, employee and non-employee alike, will help you sail through a smooth audit. And before you know it, you’ll complete the next one without a hitch!

Bundling

Many of us have multiple insurance policies be it auto, home, life, etc. When shopping for coverage, consider bundling. Purchasing more than one policy from a single firm, known as bundling, will result in less costly premiums. When bundling, some firms will offer significant discounts.

Buyer beware: If you already bundle, reevaluate your premium costs periodically. One-stop shopping is convenient, however, pricing changes over time. A deeper discount may be found elsewhere. It may be worth a look.