What should I expect from a workman's compensation audit in NJ?

Boogie,

Audits are conducted to make certain all labor expenses are categorized correctly. Independent contractors are reviewed to determine whether they should be included in worker's comp coverage. Additionally, auditors will sort out overtime, vacation pay, sick pay, etc. to make sure the cost of coverage is correct. That said, the audit is conducted by the worker's compensation company and they want to collect every penny they think they deserve. If you have paid wages correctly, estimated payroll well and categorized independent contractors correctly there should be no ramifications. I always received a small refund by calculating well. Be sure to review the results of the audit. Also, the more organized your records are the better the auditor will treat you. Good luck!

They usually check your payroll records against your general ledger, and they will require you to have insurance records for any contract labor above a certain dollar figure. You will also need to provide a class code for each employee.