New York Contractors Workers Comp Audit for Class Code 5645

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Summary New York Audit Preparation

I sat in on an audit  with a  Contractor client of mine with Class Code 5645 Carpentry- detached one-or two-family dwellings; 5190 Electrical Wiring within Buildings and 5445 Sheet rock installation-within buildings & drivers.

This Contractor usually shuttered at the thought of his annual NY State Workers Comp Audit. NY Work Comp Law requires each  insured to complete an annual audit where the estimated payroll is trued up with the payroll tax return where the actual payroll is determined. If the payroll was higher than the estimate the insured gets a bill for the difference. If the payroll was lower than estimated then the insured gets money back. And if you are a contractor the dreaded bill for uninsured subcontractors can be scary.

This client had no need to sweat this audit because  he was prepared. He had each employees listed with their job description along with their annual payroll. He had a spread sheet available will all payments to the sub contractors along with the corresponding  certificates of insurance.

The end result was that the auditor was there for 20 minutes.  Past audits for the same contractor had taken 1-2 hours. The less the auditor had to look for the less he dug. There was no additional premium . The auditor was happy because his job was easy and the client was satisfied because he didn’t receive a bill.

Contractors Work Comp audits don’t have to be a nightmare. Be prepared and ask you agent for help. For rate information and class code descriptions call Enforce Coverage Group.

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