If you’re a New York, New Jersey or Connecticut contractor, you’ve probably dealt with the nightmare that is a workers’ compensation audit. These audits can be an absolute pain in the ass, forcing you to dig through mountains of records, pay high accounting fees, and potentially face exorbitant audit bills. Even worse, if there’s a discrepancy in your paperwork, you could be accused of fraud, adding even more stress to the process.
But here’s the good news: BGES Group specializes in workers’ compensation and offers programs through top insurance organizations that make the audit process easier, saving you time, money, and frustration.
Before we explain how we can help, let’s take a deep dive into the top 10 reasons why workers’ comp audits are such a nightmare for contractors like you.
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10 Reasons Why Workers’ Comp Audits Are a Nightmare for Contractors
1. Endless Paperwork and Record-Keeping
Auditors demand extensive documentation, including payroll records, tax forms, job descriptions, and subcontractor agreements. Finding, organizing, and submitting all these records takes valuable time away from running your business.
2. Expensive Accountant Fees
Since audits can be complicated, many contractors hire accountants to ensure compliance. The problem? These professional fees can add up quickly, especially if there are errors that need fixing.
3. Unexpectedly High Audit Bills
One of the biggest frustrations with workers’ comp audits is the shocking bills they generate. If your payroll is higher than estimated, you could be on the hook for thousands—even tens of thousands—more than you budgeted.
4. Hours of Wasted Time
An audit isn’t a quick process. It can take days or even weeks to gather the required information, work with accountants, and respond to auditor requests. That’s valuable time that could be spent growing your business.
5. Risk of Fraud Accusations
Some auditing organizations cross-check your information with your customers’ records. If their reports don’t match yours, you could be accused of fraud, even if it’s just an honest mistake.
6. Worker Misclassification Issues
Auditors sometimes reclassify employees into higher-risk categories, increasing your premiums. For example, office staff might be wrongly classified as field workers, leading to inflated costs.
7. Subcontractor Headaches
If your subcontractors don’t have their own workers’ compensation insurance, your carrier may classify them as employees. This means you could be responsible for their coverage, significantly increasing your premium.
8. Constantly Changing Regulations
New York’s workers’ compensation laws are complex and frequently change. Staying compliant is difficult, and even a minor oversight can lead to fines or increased insurance costs.
9. Unfair Payment Demands
Some insurance companies require immediate lump-sum payments after an audit. If you weren’t expecting a large bill, this can cause serious cash flow problems.
10. Multi-Year Audits
Even after you think you’ve closed out an audit, insurers can dig into past years, leading to additional charges long after you thought everything was settled.
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BGES Group: The Workers’ Comp Audit Solution
At BGES Group, we understand how frustrating workers’ compensation audits can be. That’s why we specialize in workers’ compensation and offer programs through top insurance organizations that make the audit process smooth, predictable, and hassle-free.
How We Make Workers’ Comp Audits Easier for You
✅ Programs That Minimize Audit Surprises
Our programs ensure that your premiums are accurate from the start, reducing the risk of massive audit bills down the road.
✅ Proper Record-Keeping Assistance
We help you maintain organized, audit-ready records so you’re never caught off guard.
✅ Prevention of Worker Misclassification
We ensure your employees and subcontractors are properly classified, preventing unnecessary premium hikes.
✅ Subcontractor Compliance Management
We help you verify that your subcontractors have valid workers’ compensation coverage, so you’re not held liable for them.
✅ Streamlined Process That Saves You Time
Instead of spending days or weeks dealing with auditors, let us handle the process so you can focus on running your business.
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Contact BGES Group Today!
Stop letting workers’ comp audits drain your time, money, and energy. BGES Group is the trusted specialist that can simplify the process and keep your business protected.
📞 Gary Wallach – (914) 806-5853
🌐 www.bgesgroup.com
Let’s take the stress out of workers’ compensation once and for all!