If the idea of an audit feels overwhelming to you, you are not alone. NYSIF has made the audit process simpler and easier to understand. MyAudit Toolkit is a collection of audit resources that you can access directly from your audit menu panel. It contains printable material on the audit process, including key audit details and an audit glossary. The toolkit will help you simplify audit terms and will offer answers to questions you may have about how the audit process works, from beginning to end.
What Is An Audit?
When an employer purchases or renews a workers’ compensation policy, the billed premium is largely based on projected payrolls and employee job classifications. During the policy period, payrolls and operations may differ from the original projections, resulting in potential premium changes.
A premium audit is a standard insurance practice where an employer’s records are reviewed to ensure that the premium paid for the policy period is based on the employer’s actual payroll and job classifications. The New York Compensation Insurance Rating Board (NYCIRB) requires a yearly audit of any policyholder with an annual premium of $5,000 or more. However, insurance carriers reserve the right to audit policies of any premium size.
Scheduling a Virtual Audit
Policyholders who prefer a paperless audit involving no physical contact with the auditor can schedule an appointment for a virtual audit. The process begins with a simple request from you, or your agreement to a request from the auditor. You will connect via a hyperlink provided and share audit records available on your desktop computer for the auditor’s review. You can find your auditor’s information in the NYSIF audit letter.
Arranging for a Remote Audit
Policyholders who prefer not to have an on-site audit can conveniently and securely upload required audit documents instead. NYSIF’s Audit Document Upload site securely delivers your documents to the appropriate NYSIF auditor. The upload feature can also be used to resolve an audit-related issue. You will need your policy number and your audit number or appointment ID to get started. You can find those numbers on your NYSIF audit letter.
Scheduling an On-Site Audit
NYSIF workers’ compensation policyholders who receive an audit notice may schedule or reschedule an audit by using our online Premium Audit Scheduling System (PASS). PASS enables policyholders or their representatives to choose a date and time range for a premium audit appointment at an audit location in New York or New Jersey. When using PASS, be sure to have your audit notice handy.
What to Expect
Your NYSIF policy (Part 4, Sections G and H) requires you to keep all business records related to your policy and to allow NYSIF to examine these confidential documents during your audit. Someone with knowledge of your business operations must be present at the audit to answer questions regarding duties of all employees and other issues that may arise.
Please advise your NYSIF auditor as soon as possible if the audit location will be different from the one listed on your audit notice.
To ensure the correct and lowest possible premium, NYSIF auditors will review required documents and operations to determine:
- Total amount of chargeable payroll/remuneration
- Applicable classification codes for your business and employees
- The correct amount of payroll applicable to each classification code
MyAudit Toolkit provides helpful tips on preparing for your audit.
Learn more about required documents for on-site and remote audits.