Audits

An audit is the assessment of the total payroll for a policy period from all officers, employees, subcontractors, and casual laborers.  The audit also makes sure officers, employees and subcontractors are properly classified according to the job they perform.  An audit covers a specific time frame. The beginning date is the date the policy became effective, and the ending date is the day the policy ended.

An audit firm representing FUBA Workers' Comp will perform the audits.  Policyholders will need to have the following records available at the time of the audit:

• Individual payroll records for all entities covered by the workers' compensation policy
• General ledgers, payroll journals, check stubs, and last year's profit and loss statement
• Schedule C, Florida UCT-6's, Federal 941's, and any 1099's
• Total overtime per employee
• Amounts paid to subcontractors, along with a description of operations
• Certificates of Insurance or re-issued exemptions for all officers and subcontractors valid during the policy period

If subcontractor(s) were used during the policy period, the auditor will need a breakdown of how much was paid for labor and invoices for materials and equipment.  The auditor will also need copies of all certificates of insurance or valid exemptions for all subcontractor(s).  If exemptions or certificates of insurance for subcontractor(s) cannot be provided, the policyholder will be required to pay workers' compensation premium for the subcontractor(s). 

The auditor's only job is to evaluate payroll and obtain an accurate description of operations.  Once that is done, FUBA Workers' Comp will evaluate and process audit results. FUBA Workers' Comp will then make a determination if any adjustments should be made to the policy.

Compliance

If the audit is not completed in a timely manner, workers' compensation coverage will be in jeopardy of cancellation.  The auditor will make two good faith attempts to contact policyholders.  There is a penalty for non-compliance with an audit.  To avoid this penalty, we recommend that all policyholders do their best to accommodate the auditor and have all financial records available at the time of the audit.

Disputes

With each audit, written instructions will be provided on how to dispute an audit.  The dispute, the reason you disagree, and the supporting documentation must be sent in writing to the audit department.  Once we receive your dispute we will respond by fax, mail, or phone within a reasonable time.  Please note that we will let policyholders know the result of the dispute and provide a new deadline to pay the balance, or we will request further information.  Policyholders have 30 days from the date the audit is mailed to dispute its findings.

Payment Plans

Payment plans for additional premium that may be owed to FUBA Workers' Comp based on final audit are available upon request.  Please email the FUBA Workers' Comp Audit Department at fubawc@fubaworkerscomp.com if you would like further information.

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