What is an insurance audit and why does my Florida business need help with it?

An insurance audit is a review conducted by your insurance carrier — typically for workers' compensation or general liability policies — to verify that your actual payroll, employee classifications, and subcontractor usage match what was estimated when your policy was written. In Florida, these audits are mandatory and can result in significant additional premium charges if your records are disorganized or if worker classifications are incorrect. Audit Monkey specializes in preparing your records before the audit, ensuring accurate classifications, and disputing any incorrect charges on your behalf.

Do you offer bookkeeping and payroll services in Spanish?

Yes — Audit Monkey provides fully bilingual bookkeeping, payroll, and financial services in both English and Spanish. Our entire team is fluent in both languages, and all of our communications, reports, and consultations can be conducted in whichever language you prefer.

What areas of Florida do you serve?

Audit Monkey serves small businesses across all of Florida, including Miami, Orlando, Tampa, Fort Lauderdale, Jacksonville, Naples, Fort Myers, Sarasota, West Palm Beach, Gainesville, Tallahassee, and all surrounding communities. We offer both remote services and on-site consultations throughout the state.

How is Audit Monkey different from a regular bookkeeper?

Most bookkeepers focus only on recording transactions. Audit Monkey goes further — we specialize in insurance audit preparation, subcontractor compliance management, and workers' compensation audit defense. We understand the specific requirements of Florida's insurance and labor regulations, and we proactively protect your business from overpaying on insurance premiums.

Do you work with cannabis businesses in Florida?

Yes. Audit Monkey has experience working with Florida's licensed cannabis operators, including dispensaries and cultivators. We understand the unique bookkeeping, payroll, and compliance challenges that cannabis businesses face under Florida law.

How to Prepare for a Workers Comp Audit in Florida

If you run a business in Florida with employees — or subcontractors — you will face a workers compensation audit. It happens every year, at the end of your policy period, and it can result in a bill for thousands of dollars in additional premium. Or, if you are prepared, it can result in a refund.

The difference between those two outcomes almost always comes down to preparation. Here is exactly what you need to know and do before your Florida workers comp auditor shows up.

What Is a Workers Comp Audit in Florida?

When your workers compensation policy is written, your insurance carrier estimates your payroll for the coming year. Your premium is calculated based on that estimate. At the end of the policy year, the carrier audits your actual payroll to see how close the estimate was.

If your actual payroll was higher than estimated, you owe additional premium. If it was lower, you get a refund. The audit also verifies that your employees are classified into the correct class codes — because different job types carry different premium rates.

Step 1: Gather Your Payroll Records

The foundation of any workers comp audit is your payroll records. You will need:

Payroll journals or reports for the entire policy period
Quarterly 941 federal payroll tax returns
State unemployment tax (SUTA/reemployment tax) filings
W-2 forms for all employees
Records of overtime, bonuses, and tips paid

Make sure your payroll records are organized by employee and by job classification. If an employee performs multiple types of work, their payroll should be segregated by the time spent in each role — otherwise, the auditor will assign all of their payroll to the highest-rate class code.

Step 2: Collect Certificates of Insurance for All Subcontractors

This is the single most important step for Florida contractors, and the most commonly missed. If you hired any subcontractors during the policy period, you need a current Certificate of Insurance (COI) for each one showing they carried their own workers compensation coverage.

Without a valid COI, the auditor will include your subcontractors' payroll in your audit — meaning you pay their workers comp premium. For a roofing contractor with multiple subs, this can add $10,000–$50,000 or more to your audit bill.

Collect COIs before the audit. If a sub's COI has expired, contact them immediately to get a renewal. The COI must cover the dates the sub worked for you.

Step 3: Review Your Class Codes

Workers comp class codes are assigned by the National Council on Compensation Insurance (NCCI) and determine the rate you pay per $100 of payroll. Common Florida class codes include:

8810 — Clerical Office Employees: Very low rate. Make sure all office staff are properly classified here.
5551 — Roofing: One of the highest rates in Florida. Proper segregation of clerical and non-roofing payroll is critical.
5645 — Carpentry: Moderate rate. Verify that finish carpenters and framers are properly separated if applicable.
0042 — Landscaping: Moderate rate. Seasonal workers and equipment operators should be properly classified.

Review every employee's classification before the audit. If you believe an employee is in the wrong class code, gather documentation of their actual job duties to support a reclassification.

Step 4: Identify Excluded Payroll Items

Not all payroll is auditable. Florida workers comp rules allow you to exclude certain payments from your auditable payroll, including:

The overtime premium portion of overtime pay (only the straight-time rate is auditable)
Tips and gratuities in some industries
Employer contributions to qualified benefit plans
Expense reimbursements (with proper documentation)

Make sure your payroll records clearly separate these excluded items. If they are lumped together with regular wages, the auditor will include them all.

Step 5: Know Your Rights

You have the right to dispute a workers comp audit bill in Florida. If the auditor's final bill seems higher than it should be, do not just pay it. Common grounds for dispute include:

Incorrect class code assignments
Failure to credit valid subcontractor COIs
Inclusion of excluded payroll items
Mathematical errors in the audit calculation

You typically have 30–90 days from the audit bill date to file a dispute. Act quickly.

The Bottom Line

A Florida workers comp audit does not have to result in a large unexpected bill. With proper preparation — organized payroll records, current subcontractor COIs, correct class code assignments, and excluded payroll properly documented — you can ensure you only pay what you actually owe.

Audit Monkey specializes in workers comp audit preparation and dispute for Florida businesses. We have recovered over $10M in overcharges for Florida contractors, roofers, landscapers, and other businesses. If you have an audit coming up — or just received a bill that seems too high — contact us for a free review.