Payroll Audits

 

Cove Risk Services utilizes Overland Solutions (EXL Premium Audit), NEIS, Inc. and Team Hutch Premium Audit to obtain required actual payroll information from members.

 

Workers’ Compensation rates are applied to Estimated Payrolls to determine the amount to be charged for a coverage term. It is necessary to obtain Actual Payrolls after the coverage term has ended, and the amount charged is adjusted accordingly. Each Member is required to cooperate fully with the auditor in providing the actual required information. Cove Risk Services utilizes professional audit firms to obtain the Actual Payroll and other required information from Members.

 

We encourage you to please respond to any letters received from your assigned auditor by uploading your payroll documents (into their secure server). You should also contact your assigned auditor with any questions you may have using the direct phone and email they provide. They are available and eager to make the process as quick and painless as possible.

 

The Audit firm will advise you of the payroll documents needed to complete the audit. Some of these may include, but are not limited to:

  • Federal Quarterly Payroll Tax returns, Form 941
  • State Quarterly Payroll documents (ex: WR-1s)
  • Payroll Journals, Cash Disbursements, General Ledger, 1099’s
  • Detail of subcontracted work, amounts paid to all subcontractors used during
    the policy period
  • Copies of the subcontractor’s certificate of insurance showing Workers’
    Compensation coverage in force during your audit term
  • If you were involved in any OCIP (wrap up) projects, please be certain you provide
    the auditor with your certified payrolls as well as proof of coverage for the particular
    OCIP (wrap up) projects
  • If your employees were paid overtime, please be certain that you provide this data to the auditor

 

Please be aware you may be charged for uninsured subcontractors under your coverage, in accordance with the Workers’ Compensation manual governing your State. Therefore, it is extremely important that you provide up-to-date certificates of Workers’ Compensation Insurance coverage for all subcontractors used at the time of audit. If you do not have them at this time, it is advisable that you secure them as soon as possible.