Workers' Compensation Payroll Classification Audit Worksheet

Inspection worksheet for premium auditors to verify employee class codes and reconcile reported payroll against actual payroll records at policy expiration for workers' compensation premium calculation.

Audit Scope and Policy Information

• Policy period and audit period match the final workers' compensation policy term
• Audited legal entity and FEIN are identified on the worksheet
• Primary work locations and states are documented for class code review
• Audit source documents are available for review

Employee Classification Verification

• Clerical employees are separated from field, production, or service work
• Class code 8810 or equivalent clerical classification is supported by job duties
• Healthcare employees are assigned to the appropriate healthcare class code based on actual duties
• Class code 8824 or equivalent healthcare classification is supported by job duties
• Employees performing mixed duties are split between class codes using documented payroll allocation

Payroll Reconciliation

• Reported payroll reconciles to payroll registers within acceptable variance
• Gross wages, overtime, bonuses, commissions, and taxable fringe benefits are included where applicable
• Excluded payroll items are documented and supported by policy or carrier rules
• Payroll is allocated to the correct class code by employee or department
• Variance explanations are documented for all material differences

Supporting Records and Audit Evidence

• Job descriptions accurately reflect actual duties performed during the policy period
• Time records or schedules support allocation of mixed-duty employees
• Subcontractor certificates of insurance are on file where subcontractor labor was excluded
• Audit notes identify the source document used for each classification decision

Findings, Adjustments, and Sign-Off

• Misclassifications or payroll omissions are listed with estimated premium impact
• Final adjusted payroll by class code is summarized
• Open questions or carrier follow-up items are documented
• Auditor sign-off is completed