To ensure that employers are paying the appropriate premium, workers compensation law gives WorkCover and its licensed insurers a legal right to access an employer’s wages records. This review of an employer’s wages records is called a ‘wage audit’.
WorkCover uses advanced computer technology to review employers’ policy details, develop risk profiles for identifying areas of high-risk for non-compliance, and target wage audits. In addition, WorkCover’s licensed insurers also select and conduct their own wage audits.
Employers must cooperate with these inspections. In particular, they must cooperate in making arrangements for the inspection to take place within a reasonable time after the initial request. If an employer does not comply with these requests they make be issued with an order under workers compensation law. If an employer still does not comply, they may be prosecuted and fined up to 500 penalty units (currently $55,000).
For more information on wage audits, see Chapter J of WorkCover’s Wages Definition Manual.
Employers who have had wage audits processed after January 2003 and have already paid additional premium and late payment fees in respect to deemed worker issues can apply to WorkCover to have their circumstances reviewed. For the latest information on the moratorium on some workers compensation late payment fees, see 'further information'.