Audit process
As part of our ongoing compliance and education program, we conduct audits throughout the year to ensure that employers declare the correct amount of wages and have the appropriate cover.
Employers may be selected for an audit as a result of:
- data matching with agencies such as Office of State Revenue and Australian Taxation Office
- information from the general public
- referrals from other businesses
- random selection.
If you are selected for an audit, a Compliance Auditor will contact you to explain the process and to advise you of the financial information required.
In accordance with the Workers' Compensation and Rehabilitation Act 2003, WorkCover is authorised to request documents about workers and contracts for the performance of work, and to make copies of those documents.
The documents we may request include:
- A payroll summary report or PAYG payment summary report
- Profit and Loss Statement (you may delete income lines)
- Trading Statement (if applicable)
- Fringe Benefit Tax Return, including working papers (if applicable)
- Subcontractor listing with their ABN's and total amounts paid
- Working sheet (XLS, 0.09 MB) showing how you determined the wages you declared.
Throughout the audit process we may need to contact you to obtain further documentation.
Any information we request from you to conduct the audit:
- will be requested in writing
- needs to be provided within two weeks of the initial request
- is treated with the strictest confidence and will only be used to ascertain your obligations under WorkCover purposes
- is not released to third parties.
If you have difficulty accessing the information requested, or if you have any queries in relation to the audit process, contact your allocated Compliance Auditor.
The WorkCover industry classification (WIC) allocated to your policy will be also be reviewed during the audit to ensure that it reflects your predominant business activity.
WorkCover Queensland has the right to look back 3 years when auditing and reassessing your policy.
Outcome of the audit
At the end of the audit, your Compliance Auditor will contact you to discuss the findings.
There are three possible outcomes:
- Underdeclaration
- Overdeclaration
- Substantial match.
Outcome 1: Underdeclaration
This occurs if we find your wages have been under-declared (commonly due to not including superannuation in wages, or not including wages of contractors who are deemed to be workers).
Your policy will be reassessed as per the audit finding, and you will be required to pay any unpaid premium. You may also be liable to pay a penalty (s57 of the Act).
Outcome 2: Overdeclaration
This occurs if we find your wages have been over-declared (commonly due to including Director's wages, or including non-assessable allowances in wages).
Your policy will be reassessed as per the audit finding. A refund will be issued to you or a credit will be applied to your policy.
Outcome 3: Substantial match
This occurs if we find a substantial match in the amount of wages you declared and the wages you pay.
In most cases, no further action will be required and the audit will be finalised.
Reviewing a decision
If you disagree with the decision we make as a result of the audit, you can seek a review with the Workers' Compensation Regulator. The Regulator can review any decisions that we have made in calculating your premium. Read more about the review process.