BWC Audit Basics

What is the auditor looking for?

  • Are the payroll numbers reported to ODJFS (unemployment comp) and the IRS the same as the payroll numbers reported to the BWC?
  • Are the manuals assigned to the employer correct? Does the employer need additional classifications? Is each employee’s payroll reported under the correct classification?
  • Has the construction workers cap been applied correctly?
  • Are there additional payments or benefits provided to employees that should be included in the payroll reported to the BWC?
  • Are 1099 recipients independent contractors, or are they really employees?
  • Verification of the type of entity, such as corporation, LLC, partnership, etc. Are the payrolls for the officers/partners/sole proprietors reported correctly?
  • Has all casual labor payroll been reported?

What a BWC audit ISN’T

  • An inspection to find safety violations and notify OSHA or the Department of Labor.
  • An excuse to waste a lot of employer’s time.
  • A witch hunt.


Posted in audit, BWC, partner, sole proprietor.