Audit Services

The Vendor is required to provide with an audit of worker’s compensation & section 207-a records for the purpose of recovering social security and Medicare insurance tax overpayment related to lost time injury cases.
- The tax exempt status of these wages is limited to 66 2/3% of the average weekly wage subject to the State’s maximum weekly Worker’s Compensation benefit. Tax overpayments are recoverable for three years, three months and fifteen days from the close of the tax year.
- This includes the use of leave time and wages paid during the waiting period.
- Audit of payroll/wage records for the employee and years under review.
- Calculation of Workers’ Comp and Social Security tax overpayment for each year based on IRS code and maximum benefits.
- Preparation of all amending returns for each open year including IRS Form 941-X, IRS Form W-3c for filing with IRS and Social Security.
- Preparation of Social security ‘E-file’ Compliant Electronic Wage Reporting file for electronic filing with the Social Security Administration.
- Preparation of W-2c’s for all impacted employees.
- Preparation of employee refund schedule
- A written audit findings report;
- A schedule of affected employees;
- A schedule of calculated employer and employee tax overpayments;
- Supporting calculations by employee, year, and payroll period where available;
- Draft and/or final amended federal forms;
- Employee authorization documentation process;
- W-2c preparation support;
- SSA electronic wage reporting file;
- Refund tracking schedule; and
- Final close-out report identifying amounts claimed, amounts recovered, and any amounts not recoverable.