How To Prepare For Your Audit

How To Prepare for Your Audit

Federal Tax Returns
IRS Form 941s or New Mexico SUTAs
Cancelled checks and bank statements
General Ledgers
Cash disbursement journals
Books of original entry (including source documents)
Job contracts and/or invoices
Certificates of insurance for sub-contractors (if applicable)
Payroll records including overtime in dollars, hours, totaled by employee per pay period, and summarized by class code in order to receive credit for excess overtime pay (payroll paid in excess of the regular rate of pay)
Job descriptions detailing each employee’s duties
Written contracts
Executive officer payrolls and descriptions of their duties (even if the officers have elected to be excluded from state workers’ compensation coverage)
Brochures or promotional items that offer a comprehensive description of your business operations, including your products and/or services

Overtime earnings – The most common way to reduce your insurance cost is to differentiate overtime earnings in your records to separate straight time and premium time. For instance, the half-time portion of ‘time and one-half’ for overtime wages is not included in calculating your premium
Tip wages – Employee tip wages will not be included when they are separated from your employee’s regular wages.
Correct classification(s) – Use correct classification(s) to describe your business, as sometimes there are lower cost classifications available to you. Determining correct business classifications can be complicated and our premium audit professionals can help you understand this process.
Learn more – There are also other record keeping methods that you can use to lower your premium costs. New Mexico Mutual provides these tips and other premium audit information, call Premium Audit Department at: 505-343-2825 or 505-343-7720