For many restaurant owners, the workers comp audit is the most unpleasant surprise of the year. It does not have to be. The bill comes from a few specific, reviewable things.
How the audit works
Workers comp premium starts as an estimate based on projected payroll and class codes. At the end of the policy term, the carrier audits actual figures: payroll by classification, and how staff were classified. If actual payroll is higher than estimated, or classified into higher-rated codes, the premium rises. The audit is a true-up, not a penalty, but it can produce a real bill.
What drives surprise bills in a restaurant
Restaurants run several class codes, kitchen, service, sometimes delivery and management, and the rates differ. Payroll allocated to the wrong, higher-rated code inflates the premium. Owner and officer payroll that should be capped or treated differently can add cost. And delivery staff can reach into auto exposure on top of workers comp. Each of these is preventable with accurate records.
How to prepare
Keep clean payroll records broken out by role, classify staff into the right codes, and know how owners are treated in your state. When the audit worksheet arrives, review it against what actually happened before accepting it.
If it is wrong
Audits can be disputed when class codes or payroll were applied incorrectly. The case rests on documentation. A workers comp review checks the worksheet against your real operation and helps you correct an overcharge. Requirements vary by state, so verify specifics with your state agency.