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Employer Audits
Audits help us ensure employers are assessed fairly and equitably and that they are meeting the requirements of WCB policies, procedures and the Workers' Compensation Act.
We audit employers to ensure two things: that their assessable earnings have been reported correctly and that their industry code best reflects the firm's activities. The industry code assigned to a firm dictates the rate of assessment the firm pays. Both financial audits and industry investigations can be part of the routine audit program, but only one, the other or both may be performed, according to the situation.
Employers are selected for audits for one of the following reasons:
- they are part of industry being reviewed,
- the firm no longer employs workers and has asked for a refund,
- the firm is part of a random sample.
How to Prepare for an Audit
Our auditor will contact you to try and arrange for a mutually agreeable time and place to conduct an audit. This is usually at your place of business, but can take place at a public accountant's office or at our offices.
The audit involves a review of financial records, usually for the two previous calendar years. We want to verify that the correct amount of assessable earnings have been reported for assessment purposes. The type of records we need to see include, but aren't limited to: - T4s, T4-As and associated summaries,
- payroll records,
- record of casual labour,
- record of all contract labour, (This usually involves reviewing the general ledger, cheque disbursement journals/registers, synoptic journals and/or cancelled cheques. Reviewing invoices of subcontractors/contractors is also often necessary).
- year-end financial statements.
In many situations, we like to take a tour of your facilities. The information we gain helps us to assure your firm is assigned the correct industry code.
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