Audit

An annual audit is required by the Department of Insurance to determine if any adjustments need to be made to the amount of premiums paid. Once reviewed and processed, the audit may result in a refund (in the instance of overpayment) or an additional amount due to The Fund (in the instance of underpayment or under reporting).

The Fund works with outside audit firms to help facilitate an easy audit process. For these audits, you will be required to provide the following documentation:

 

  • All payroll records (including payroll records for regularly employed Kentucky employees who worked out-of-state) in the form of workers’ compensation reports, ledgers, and journals
  • All Out-of-State payroll records for members with Midwest policies
  • All federal and state quarterly tax returns
  • All 1099’s, form 1096, and payments made to subcontractors, cash, volunteer or non-1099 labor
  • All Certificates of Insurance for contractors used (Note: You will be charged premium for any uninsured contractors for which you do not have a Kentucky Workers’ Compensation Certificate of Insurance with Kentucky listed in 3(A).)

Be sure to prepare a list of any questions you may have about your audit in advance. The owner, officer of the company or bookkeeper/ accountant should be present during the audit to provide documentation and have a clear understanding of the process.

 

If you have questions, visit our FAQ page here.