Workers' Comp Audit Checklist: What to Prepare and What to Expect
Know what your auditor needs, organize your records, and complete your audit without unnecessary delays.
What a Workers' Comp Audit Is (And Why It Happens)
A workers' comp audit compares the payroll and operations your policy was priced on with what actually happened during the policy period. Your premium was set from estimates at the start of the year, and the audit replaces those estimates with your real numbers.
Workers comp audit requirements apply to businesses of every size, and completing the audit is a condition of your policy, not an option. Once you know that, the work comes down to one thing: having the right records ready when the auditor asks.
How Does a Workers' Comp Audit Work?
Most audits follow the same path from notice to final bill, and knowing each step makes the process far less stressful.
01
You receive an audit notice
The notice names your due date, the policy period under review and how the audit will be done.
02
You gather and submit your records
Payroll, tax forms, subcontractor certificates and a description of your work go to the auditor by the date on the notice.
03
The auditor reviews payroll, classifications and operations
Each employee's wages are placed in a classification based on the work they actually perform.
04
The auditor follows up with questions
Expect requests to explain job duties, subcontractor payments or changes in your operations.
05
Your carrier issues the final premium adjustment
You receive a refund, a bill or no change, depending on how your actual payroll compares with the estimate.
Your notice will tell you which format your audit takes:
- Mail or online upload, where you send copies of your records by the due date.
- Phone, where the auditor walks through your records with you in a scheduled call.
- Virtual, where you share documents and answer questions over a video session.
- In person, where the auditor visits your office to review records on site.
Preparing your records before you submit anything is the most reliable way to cut down on follow-up questions and delays.
Workers' Comp Audit Checklist
This checklist covers the workers comp audit requirements most auditors work from, grouped so you can gather everything in one pass. Print it and check items off as you pull them together. Small business owners can also read our companion guide, New York Workers' Comp Audit Checklist: What Small Businesses Need to Prepare.
Payroll and Employee Records
Payroll summaries and detailed payroll reports for the full policy period.
Each employee's name, actual job duties, state of work and gross wages.
Overtime broken out separately from regular wages, by classification.
Payroll split by role for any employee who performs more than one type of work.
Tax and Financial Documents
Federal Form 941 quarterly returns for every quarter in the policy period.
Federal Forms W-2 and W-3 for the calendar years the policy period covers.
State payroll tax filings for every quarter in the policy period.
For owners with no employees, the business tax return that applies: Schedule C for sole proprietors, Form 1065 for partnerships or Form 1120 for corporations.
Subcontractor Documentation
Each subcontractor's name and the work they performed.
The dates each subcontractor worked within your policy period.
The total you paid each subcontractor, with payment records to support it.
A certificate of insurance for each subcontractor covering the dates they worked for you.
A clear separation between insured and uninsured subcontractors.
Business Operations Information
A description of the work your business performs.
Any changes in your operations during the policy period, such as new services or locations.
Classification assignments tied to each employee's actual duties.
When these records are organized and consistent with each other, your audit reflects how your business really operates.
How to Prepare for a Workers' Comp Audit: Two Weeks Out
If your notice just arrived, this sequence gets you from a stack of paperwork to a finished submission.
01
Read the notice closely
Note the due date, the policy period and whether your audit is by mail, online, phone, virtual or in person.
02
Pull payroll by classification
Run payroll reports that separate wages and overtime by the type of work each employee does.
03
Collect every subcontractor certificate
Match a certificate of insurance to each subcontractor you paid, and confirm the dates cover the time they worked for you.
04
Write out real job duties
Describe what each employee actually does day to day, not only their title.
05
Review the numbers before you submit
Check that payroll, tax forms and subcontractor totals agree with each other before anything goes to the auditor.
Why Documentation and Classification Matter
Your premium depends on how payroll is classified, and classification follows the work people actually perform. If your records don't separate payroll by classification, or job duties aren't written down, payroll can end up in a higher-rated category than the work calls for. That is why:
Job duties must match classifications.
Payroll should be broken out by role.
Records must support how work is performed.
If you are unsure whether your employees are in the right classifications, our class code and payroll review checks each role against the work behind it before your audit.
Online and Remote Audits: What's Different
Many audits are now completed through online portals or remote sessions, which means uploading documents rather than meeting with an auditor in person.
Files must be clearly labeled and organized.
Documents are reviewed digitally.
Follow-ups may come through email or portal notifications.
An upload-ready set of documents helps you finish an online audit faster. Our virtual audit prep organizes and labels your files so they are ready for the portal.
What Happens If You Miss the Deadline or Submit Incomplete Records
If your records don't arrive by the due date, or arrive incomplete, your carrier may complete an estimated audit using limited information. That can lead to:
Higher premiums based on assumptions rather than your actual payroll.
Additional charges, depending on your carrier and policy.
Delays in closing out your policy period.
An estimated audit can usually be revisited once you supply the missing records. If you are already facing an estimated audit or a bill that doesn't match your business, our audit dispute support helps you assemble the records and request a correction.
New York Items to Add to Your Workers' Comp Audit Checklist
New York audits call for a few records that generic checklists leave out. Add these to your list:
NYS-45 quarterly returns, alongside your federal 941, W-2 and W-3 forms.
A New York
certificate of workers' comp coverage from each subcontractor: Form C-105.2 from a private carrier or Form U-26.3 from NYSIF.
A CE-200 certificate of attestation of exemption for any subcontractor with no employees.
Classifications that follow the New York Compensation Insurance Rating Board system, which New York uses in place of the national system.
Workers' Comp Audit Questions New York Employers Ask
What documents do I need for a workers' comp audit in New York?
Most New York auditors ask for payroll reports, federal 941, W-2 and W-3 forms, NYS-45 quarterly returns and a description of each employee's duties. If you used subcontractors, you will also need payment records and a New York certificate of coverage or CE-200 exemption for each one.
Is a workers' comp audit optional?
No. Completing the audit is a condition of your workers' comp policy. If you don't complete it, your carrier can estimate your premium without your records.
How long does a workers' comp audit take?
Most audits take a few weeks from the notice to the final premium adjustment. A mail or online audit with complete records often moves fastest, while missing documents and follow-up questions add time.
What happens if I miss my workers' comp audit deadline?
Your carrier may complete an estimated audit using limited information, which often leads to a higher premium. An estimated audit can usually be revisited once you supply the missing records, so contact your carrier and gather the records as soon as you can.
Do I need certificates of insurance from my subcontractors?
Yes. Your auditor needs a certificate for each subcontractor showing workers' comp coverage for the dates they worked for you. Without one, payments to that subcontractor can be charged to your policy as if they were your own payroll.
What if I had no employees during the policy period?
You still complete the audit. Expect to provide your business tax return, such as Schedule C, Form 1065 or Form 1120, and records for any subcontractors you paid, so the auditor can confirm there was no employee payroll.
Can a workers' comp audit be done online?
Yes. Many carriers now complete audits through secure upload portals or virtual sessions. Clearly labeled, organized files help an online audit close with fewer follow-up requests.
Why do job duties matter so much in a workers' comp audit?
Classifications are based on the work each employee actually performs, not their job title. Written job duties show the auditor which classification fits, which keeps payroll from landing in a higher-rated category.
Turn Your Audit Into a Repeatable Process
Once your records are organized, future audits become much easier to manage. Keeping payroll, classifications, and subcontractor documentation structured throughout the year helps reduce last-minute stress and improves accuracy.
Maintain organized payroll records
Update job duties as roles change
Keep subcontractor COIs aligned with your policy period
Store documents in a consistent format for reuse
What Audit Season Looks Like When the Documents Are Ready
Every notice and every penalty depends on the employer's own records and circumstances. Results differ from case to case, and a past outcome does not promise a similar result.
– Greg Emminger, National Credit Works, LLC, Cheektowaga, NY
"Karen made it so easy to work with her, she assisted with all the appropriate documents needed to complete the audit which allowed us to focus on running our business. Karen then prepped the audit and advised us if we would be entitled to a refund or if we would owe an additional premium. Having the advance knowledge gave us the opportunity to be confident our business budget was on target."
Want Help Before You Submit?
If you would rather have your records reviewed before they go to the auditor, we can take that on. Our workers' comp audit assistance covers the audit from the first notice through the final bill:
Karen Catalano has worked in insurance since 1998, including underwriting and commercial insurance, so your records are prepared the way auditors review them.
We review your records and calculate your premium before anything is submitted.
Our support fits online, paper and in-person audits.
We help employers in Buffalo and across Western New York, as well as Rochester, Syracuse and Albany, with audits handled in person or remotely.