Home > Workmens Compensation > Classification Non-Compliance is VERY Expensive

Classification Non-Compliance is VERY Expensive

It can be as simple as having a salaried 20 hours a week person working part-time with no time card. If audited, that company will pay premiums on the other 20 hours plus a 20% penalty. In addition, there are insufficient records penalties equal to $1000 a year per employee, and if the auditor has to make dollar quotas, they can add on a misrepresentation penalty up to ten times the premium amount difference. I kid you not.

So, do yourself a favor. Find a competent classification audit reviewer each year to keep up with the changes in federal and state compliance workers’ compensation reporting. You will stay in business much longer.

For more information, contact Ted Carlson, CFE at WKRcomp LLC in Seattle at 206.432.9592.

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