Embedded Files
Maintaining proper records and preparing information in advance can help simplify the audit process and save time. Below is an outline of general information and basic audit requirements to help you get started.
Maintaining proper records and preparing information in advance can help simplify the audit process and save time. Below is an outline of general information and basic audit requirements to help you get started.
Workers' Compensation - Payroll
Workers' Compensation - Payroll
Primary Data
Primary Data
1.) Gross compensation report by employee (active and terminated within the policy period) along with work state, job title, and duties
1.) Gross compensation report by employee (active and terminated within the policy period) along with work state, job title, and duties
a.) Depending on your payroll provider, you may be able to generate a report for the policy period, or your auditor may suggest various year-to-date/quarter-to-date reports.
a.) Depending on your payroll provider, you may be able to generate a report for the policy period, or your auditor may suggest various year-to-date/quarter-to-date reports.
b.) Payroll reports should summarize all earning types, by employee, for the auditor to review for potential deductions.
b.) Payroll reports should summarize all earning types, by employee, for the auditor to review for potential deductions.
2.) Listing of all appointed officers, owners, partners, or sole proprietors
2.) Listing of all appointed officers, owners, partners, or sole proprietors
3.) 1099 payments, along with details of services provided
3.) 1099 payments, along with details of services provided
Secondary Verification
Secondary Verification
1.) Quarterly payroll tax returns (provide the four quarters closest to the policy period)
1.) Quarterly payroll tax returns (provide the four quarters closest to the policy period)
a.) State unemployment returns (for example, in New York, NYS-45)
a.) State unemployment returns (for example, in New York, NYS-45)
b.) Federal 941 returns
b.) Federal 941 returns
2.) Business tax returns (such as corporate, 1120S)
2.) Business tax returns (such as corporate, 1120S)
General Liability - Sales
General Liability - Sales
Primary Data
Primary Data
1.) Monthly sales journals
1.) Monthly sales journals
2.) General ledgers
2.) General ledgers
3.) Reports should show gross sales, prior to deductions, by each account of type of sale (products or services).
3.) Reports should show gross sales, prior to deductions, by each account of type of sale (products or services).
4.) Additional reports may be requested by your auditor to extract potential deductions.
4.) Additional reports may be requested by your auditor to extract potential deductions.
Secondary Data
Secondary Data
1.) Income statements/profit and loss statements
1.) Income statements/profit and loss statements
2.) Federal income tax returns (most recent calendar year or fiscal period)
2.) Federal income tax returns (most recent calendar year or fiscal period)
3.) State sales tax returns (filing periods closest to the policy period)
3.) State sales tax returns (filing periods closest to the policy period)
Other Premium Basis
Other Premium Basis
Depending on your business and policy, premium basis may vary (e.g., subcontractor costs, admissions, tonnage).
Depending on your business and policy, premium basis may vary (e.g., subcontractor costs, admissions, tonnage).
Your CrossCheck auditor will guide you through the required information specific to your policy's premium basis.
Your CrossCheck auditor will guide you through the required information specific to your policy's premium basis.
Additional Information
Additional Information
- Every CrossCheck audit notification is accompanied with a detailed outline of records specific to your policy.
- Every CrossCheck audit notification is accompanied with a detailed outline of records specific to your policy.
- Your auditor may request additional information upon further review.
- Your auditor may request additional information upon further review.
- Detailed audit requirement lists and report samples can be found here.
- Detailed audit requirement lists and report samples can be found here.
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