Workers’ Comp Audit – Easy & Accurate Compliance
Stay compliant. Avoid penalties. Protect your business.
Every year, Minnesota insurance carriers require a workers’ compensation audit. It verifies payroll, class codes, and subcontractor information to confirm your premium is correct. At City Insurance, we make this process painless—so you can focus on running your business.
📞 Call us today at (763) 582-1888 or
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What is a Workers’ Comp Audit?
A workers’ comp audit is an annual review your insurance carrier requires to compare your estimated payroll with your actual payroll. If payroll has changed, your premium may be adjusted. This ensures your coverage is accurate and your employees are properly protected.
Why Choose City Insurance?
Audits can feel overwhelming—especially if you receive short deadlines or complicated requests. At City Insurance, we’ve helped Minnesota businesses prepare, review, and complete their audits quickly. We understand Minnesota workers’ comp carrier requirements, handle the paperwork, and guide you through each step so there are no surprises.
How Our Process Works
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Request Your Audit – Submit your audit request through our website.
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Complete Intake Form – Provide payroll details, subcontractor info, and documents.
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Invoice & Processing – We review, prepare the audit package, and provide a clear invoice so you know exactly what you’re paying for.
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Submit to Carrier – Your completed audit is delivered directly to your insurer.
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Confirmation – You receive proof of submission and updates if adjustments are made
Common Pitfalls to Avoid
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Unreported subcontractors – If 1099 workers are not insured, their costs may be added to your payroll. Example: You hire a roofer as a subcontractor without workers’ comp coverage. The insurance company treats them like your employee and adds their $50,000 payment to your payroll, which increases your premium.
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Misclassified employees – Putting employees in the wrong class code can cause higher premiums. Example: You classify an office clerk as a construction laborer. Since construction is higher risk, the insurer will charge a higher rate per $100 of payroll, costing you more than necessary.
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Missing payroll records – Carriers may estimate your premium higher if documentation is incomplete.
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Late responses – Delays can result in penalties or policy cancellation.
Avoiding these pitfalls keeps your premium fair and your policy safe from cancellation.
Workers' Comp Audit Questions
Yes. Minnesota carriers require annual audits for every active workers’ compensation policy. This ensures your premium matches your actual payroll, protects both you and your employees, and is required for all active policies in Minnesota.
If you don’t complete the audit, the insurance company can issue a penalty, increase your premium based on an estimate, or even cancel your coverage.
Subcontractors can be excluded only if they provide a valid certificate of insurance showing active workers’ compensation coverage. Otherwise, carriers will add their cost to your payroll.
If your payroll increased, if employees were reclassified into higher-risk roles, or if subcontractors were uninsured, the carrier will adjust your premium upward. The reverse is also true—if payroll decreased, your premium may go down.
Yes. We can step in quickly, gather documents, and work with your carrier to get your audit back on track—helping you avoid penalties.
Our pricing is simple:
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$100 – For businesses with no subcontractors.
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$150 – For businesses with up to 5 subcontractors (valid COIs required).
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If you have more than 5 subcontractors, please call us first to discuss acceptability.
Most of our clients don’t have payroll, so no payroll upload is needed. If you do have payroll, we’ll guide you through providing the right documents.
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