Workers Comp Audit

AZ PowerWash Pros

AZ PowerWash Pros

New member
We were audited for our workers comp and they are saying we exceeded our amounts on payroll that we put down and we owe $9,000. I then audited their audit to find they are trying to claim our subcontractors as employees and said we need to pay workers comp on our subs. One of the subs is my sales guy who does not need insurance because he is a single person business. Plus he does not even touch a wand or do anything he can get injured doing. They told me "he could get injured by tripping over a trash can at his home office."

So now I have to get my subs insurance policies to drop the others but they are still saying I have to pay for my sales guys workers comp. That seems DUMB to me.

Anyone else have this problem?
 
SCF got to love them, you tried doing it all right. I'm sorry
AZ PowerWash Pros said:
We were audited for our workers comp and they are saying we exceeded our amounts on payroll that we put down and we owe $9,000. I then audited their audit to find they are trying to claim our subcontractors as employees and said we need to pay workers comp on our subs. One of the subs is my sales guy who does not need insurance because he is a single person business. Plus he does not even touch a wand or do anything he can get injured doing. They told me "he could get injured by tripping over a trash can at his home office."

So now I have to get my subs insurance policies to drop the others but they are still saying I have to pay for my sales guys workers comp. That seems DUMB to me.

Anyone else have this problem?
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If we use subcontractors and don't get a copy of their wc or liability ins certificate. What we pay them is considered our payroll. The day I picked up my wc policy my insurance agent told me." Always get a copy of your subs insurance certificate naming your business as also insured or you will be charged for them on your audit" the insurance companies are better at tracking illegal sub contractors than the govt.
 
wow... that sounds crazy!

We had an audit a while back, but unknown to us, the paperwork we submitted was lost by them and we got a bill for $1,700 - after going through all payroll reports it turned out that we had over paid due to the wrong classifications on myself and employees... got $1,700 back.

We use ADP pay-by-pay and the Tower Group is the carrier.

Hope you can get it fixed Ty.
 
"Your sales guy" sounds like he could be an employee. Or is he a sales guy for many contractors? In my state, single man shops can get a certificate from the state where they have signed off of WC. That certificate is accepted by the auditor the same as any other insurance cert.

Legitimate subs have their insurance agent submit their coverage docs to you before they receive their first payment. And then you mark your calendar to request a new doc when the current one is set to expire.

No current doc, you're going to be paying workmens comp on them.
 
apsurfacesolutions said:
If we use subcontractors and don't get a copy of their wc or liability ins certificate. What we pay them is considered our payroll. The day I picked up my wc policy my insurance agent told me." Always get a copy of your subs insurance certificate naming your business as also insured or you will be charged for them on your audit" the insurance companies are better at tracking illegal sub contractors than the govt.
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+1. Same here.
 
Ahh, the joys of scf. They will get the money. Pay it, cover your bases with certs and move on. They used to au it me every year, and no matter how perfect our records we always owed. Drove me nuts.
 
Scott Stone said:
Ahh, the joys of scf. They will get the money. Pay it, cover your bases with certs and move on. They used to au it me every year, and no matter how perfect our records we always owed. Drove me nuts.
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Should I tell him how not to ever have audit or increase ever again.

The sad thing is they are making adjustments on Deposit, he hasn't gotten that bill. If he didn't like 8000 this one is not going to look good.
 
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