Payroll Records and Audit Preparation Guidelines

This document is a guide that outlines the necessary payroll records required for policies with employee payroll that file IRS Form 941, as well as for those without employee payroll. It details the information needed, including employee names, gross wages, and various deductions. Additionally, it specifies the forms that can be used for different business types, such as IRS Forms 1040, 1065, and 1120. The guide also addresses the documentation needed for subcontractors and non-employees, including IRS Forms 1099 and 1096, and emphasizes the importance of maintaining accurate records for audits. An audit preparation checklist is provided to assist in gathering the required documents. Furthermore, the document highlights possible deductions that can reduce premiums, such as overtime and auto allowances, and offers record-keeping tips to ensure compliance with the National Council on Compensation Insurance (NCCI) regulations.