Like other audits, a workers compensation wage audit can be very stressful & confronting. Businesses face having to pay higher unpaid premiums, late payment fees & the actual audit costs. We assist businesses of all sizes either pre or post wage audits reduce their financial exposure.
iCare and its scheme agents have legal rights to audit employer’s records to ensure they are paying the correct premium.
Wage Audits – We Can Help & What to Expect
Section 174 of the act states that employers must keep and maintain in good order records of all wages paid and can be requested at any time to provide these records to iCare or any authorised person. A wage audit would normally be conducted for three completed policy periods.
iCare will notify the employers with a written notice including details of the auditor who will then contact the employer to make arrangements for the wage audit to take place.
Employers must cooperate in relation to a wage audit by making arrangements for it to take place within a reasonable time after the initial request. If the employer does not comply with the request to provide records for the audit, iCare can issue an infringement notice and the employer can be prosecuted and fined up to $55,000.
Wages can include but are not limited to Salary/Wages, Overtime, shift and other allowances, Over award payments, bonuses, commissions, payments to working directors, payments for sick leave, public holidays and leave loadings, superannuation contributions, fringe benefits, long service leave termination payments and trust distributions.
The Scheme Agent will notify the employer of the results of the audit within 30 days of receipt of the Wage Audit final report.
What happens after you are audited?
When an audit reveals a wage under declaration, the employer must pay the outstanding premium as well as a late payment fee dating back to when the premium was originally due.
In addition, when wages are under declared by more than 25 per cent, the employer will be charged the wage audit cost.
We can help?
Workers compensation is a highly technical area and dependent upon the specific circumstances there may be grounds for appeal against wage audits, late payment fees, etc.
ABILITY GROUP specialises in providing businesses of all sizes across industries with both Pre-audit Reviews and Post-audit Services. Our consultants focus on minimising the business and financial impacts of wage audits for our clients and possess a track record in saving clients time, frustration, effort and money.
Contact us to discuss how we can help.
Reference: Wages Definition Manual