"How To Be a WorkComp Guru Part II"

The hardest part of being in business is staying up with all the paper work. However, if you don't, it will surely come back to haunt you. Workers Compensation is an insurance coverage you buy to protect you from the government and your employees. It is statutory, meaning it's required if you have employees! Okay, you say, I'll do what's required. That makes you a good risk for some insurance carrier. You should get the state prevailing rate. Pay the premium and everything is fine. Well, at least you hope that's the way it is. I hope so, too. Sometimes, it just doesn't work out the way we hope for, however. When you issue a pay check to an employee, you need to be able to breakout the overtime, bonuses, reimbursements, per diems and any other monies paid to that employee and keep them separated through out the year. Why, you ask? Because 45-60 days after your policy expires or renews, a company representative normally referred to as an auditor will visit you. This is done either by a personal visit, phone audit or a paper audit which is referred to as a voluntary audit. Kind a sounds like an IRS stipulation, doesn't it? Voluntary always means, it's a requirement and is even stated so in your Workers Compensation contract (POLICY). By keeping all of these various methods of pay separated, YOU can save up to 31% on your workers compensation costs. Now you're talking some BIG BUCKS! or could be, not to mention the time involved in bringing your payroll records to the level needed to accomplish an audit. So, now we have covered 1. Correct Classifications and 2. Being Careful on Audits. Stay tuned to Part III of "How to Become a WorkComp Guru". To see and know more about workcomp go to:http://www.oaktreeagency.com/Work_comp.html