Workers’ comp audits have a way of landing on your desk at the worst possible time. You’re mid-quarter, your team is stretched, and suddenly there’s a notice requiring documentation you’re not sure you have. If you’re operating through G&A Partners, the process isn’t the same as dealing with a standalone commercial carrier — and that distinction matters more than most business owners realize.
G&A Partners runs workers’ comp coverage under a master policy as part of their co-employment structure. That means G&A is the named insured, they hold the carrier relationship, and they act as the intermediary when an audit gets initiated. But here’s what catches people off guard: you’re still the source of truth for most of the underlying data. Payroll records, job classifications, headcount changes, subcontractor documentation — that all originates with you.
This guide is specifically about how the audit process works inside a G&A Partners arrangement. It’s not a general primer on workers’ comp audits or PEOs from the ground up. If you need that foundation first, our guide on PEO workers’ comp covers the core mechanics. What we’re focused on here is the G&A-specific process: what your responsibilities are as the worksite employer, where the documentation gaps tend to show up, and how to avoid the premium adjustments that blindside business owners every year.
Whether you’re a CFO reconciling year-end numbers, an operations manager fielding a request from G&A’s risk team, or a business owner staring at an audit notice wondering what comes next — this is a practical walkthrough of what to do and in what order.
One important note before we get into it: G&A Partners’ audit support procedures can vary based on your contract terms, your industry classification, and your state. Always verify current procedures directly with your G&A account team. What’s described here reflects how the process typically works under a PEO co-employment arrangement, not a guarantee of how it will work in your specific situation.
Step 1: Understand What Triggers the Audit and Who Owns What
The first thing to get straight: workers’ comp audits under a PEO master policy are initiated by the carrier, not by G&A Partners and not by you. The carrier conducts an annual audit (sometimes more frequently) to reconcile the estimated payroll used to set your premium against the actual payroll that occurred during the policy period. G&A receives that audit request and coordinates the response on your behalf.
This is where the co-employment structure creates a dynamic that trips people up. G&A is the employer of record for insurance purposes — they hold the policy, they have standing with the carrier, and they’re the ones who formally respond to audit requests. But the payroll data, job classifications, and workforce changes that feed into the audit? Those originate with you. If that information isn’t accurate in G&A’s system, the audit will surface the discrepancy.
Common audit triggers worth knowing about:
Significant payroll growth or reduction: If your headcount or total wages shifted materially during the year, the carrier wants to verify the premium reflects what actually happened.
New job codes added mid-year: Adding employees in a new role or trade category mid-year, especially in higher-risk classifications, often prompts closer scrutiny.
High claim frequency: If you had multiple claims during the policy period, the carrier may conduct a more detailed audit to review classification accuracy and payroll allocation.
Industry risk reclassification: Some industries face periodic reclassification reviews, particularly in construction trades, home services, and manufacturing — sectors where G&A has significant client concentration.
Your first practical step is to pull your most recent G&A service agreement and review the section that addresses workers’ comp audit responsibilities. Specifically, you want to confirm which party is contractually responsible for responding to carrier requests and what documentation you’re required to provide. This is more often misread than you’d expect — many business owners assume G&A handles the entire process with zero input required on their end. That’s not how it works.
Even under a full-service PEO arrangement, you are the operational source of truth. G&A manages the carrier relationship, but they can only report what’s in their system. If your actual operations diverged from what was originally set up — new hires in different roles, employees whose duties changed, subcontractors used without proper documentation — those gaps become your problem at audit time. Understanding PEO workers’ compensation responsibilities from the outset helps prevent these gaps from forming in the first place.
Step 2: Gather Your Payroll and Classification Records Before G&A Asks
Don’t wait for G&A to send you a documentation request before you start pulling records. By the time a formal request arrives, you’re already behind. The business owners who navigate audits cleanly are the ones who have their records organized before the conversation starts.
Here’s what you’ll need for the audit period:
Quarterly payroll summaries by employee: Total wages, hours worked, and any overtime or bonus payments. You want this broken down by individual, not just by department or total.
Job titles and duty descriptions: Not just the title — the actual duties performed. “Project Manager” means different things in an office context versus a field context, and auditors know that.
Mid-year classification changes: Any employee who changed roles, moved from office to field work (or vice versa), or took on additional responsibilities during the audit period.
Subcontractor certificates of insurance: We’ll cover this in more detail in Step 5, but start collecting these now.
G&A Partners will provide payroll data to the carrier from their internal system. That’s one of the core services they’re delivering. But here’s the catch: their system only knows what you’ve told them. If you made hiring changes, adjusted roles, or brought on temporary labor without formally notifying G&A, their records may not reflect your actual operations.
The practical action here is to pull your own payroll reports for the audit period and compare them line by line against what G&A has on file. Request a payroll summary from your G&A account manager and put the two documents side by side. Discrepancies at this stage are fixable. Discrepancies discovered by the auditor are not — at least not without a formal dispute process. If you want a structured framework for this reconciliation step, our overview of PEO payroll audit support outlines what that process typically looks like.
This step matters especially for businesses with mixed workforce types. If you’re in home services, HVAC, roofing, or any trade where some employees work in the field and others work in the office, document which employees perform which duties in writing. Not just by job title — by actual duties. An office coordinator who occasionally runs supplies to job sites may seem like a minor detail. Under a workers’ comp audit, it’s the kind of detail that can shift a classification from a low-rate code to a significantly higher one.
The most common source of audit adjustments isn’t fraud or bad faith — it’s just sloppy record hygiene. Employees get reclassified because their job descriptions were never updated. Payroll figures don’t match because a mid-year hire wasn’t properly onboarded into G&A’s system. These are preventable problems, and this step is where you prevent them.
Step 3: Coordinate Directly with Your G&A Account Manager
G&A Partners operates on a dedicated account manager model. That person is your primary point of contact for audit coordination — not the carrier directly. Unless you’re dealing with a field audit where the auditor contacts the worksite employer directly (more on that in a moment), all communication should flow through your account manager.
When you first learn an audit is happening, get on a call with your account manager and ask these specific questions:
What is the audit period? Confirm the exact start and end dates so you’re pulling the right records.
Which carrier is conducting it? G&A works with multiple carriers depending on your state and industry. Knowing who the carrier is helps you understand the audit format and timeline.
What format will the audit take? Mail audit, phone audit, or field visit — each one has different documentation requirements and timelines.
What does G&A need from you specifically? Get a clear list in writing. Don’t rely on a verbal summary of what they think they’ll need.
Request a pre-audit alignment call before any documentation is submitted. This is worth doing even if G&A doesn’t proactively suggest it. A 30-minute call to align on the timeline, confirm what’s in their system, and identify any gaps in your records can prevent weeks of back-and-forth after the audit findings come in.
One thing to understand about G&A’s internal process: they typically act as the intermediary between you and the carrier. But in some field audit scenarios, the auditor may contact the worksite employer directly. If that happens, don’t provide documentation independently. Loop in your G&A account manager before responding to any direct carrier contact. G&A is the named insured on the master policy, and any documentation you provide outside of their oversight can create inconsistencies.
Get everything in writing. If your account manager tells you something verbally about premium estimates, classification decisions, or audit scope, follow up with an email that summarizes what was discussed. This isn’t about distrust — it’s about having a clear record if anything gets disputed later.
If you’re not getting clear, timely answers from your G&A account team about the audit scope, timeline, or your specific responsibilities, that’s a signal worth paying attention to. How other PEO providers handle this same process is worth understanding — the Paychex Oasis workers’ comp audit process offers a useful point of comparison for what proactive audit coordination can look like.
Step 4: Review Your Employee Classifications for Accuracy
Workers’ comp premiums are calculated using classification codes — typically NCCI codes in most states, though California uses the WCIRB system and a handful of other states operate under independent rating bureaus. Each code carries a base rate, and that rate is applied to the payroll for employees in that classification. The higher the risk associated with a job type, the higher the rate.
G&A assigns class codes when you onboard employees. But if your workforce has evolved since onboarding — and most workforces do — those original codes may no longer reflect what people are actually doing. This is one of the most consistent sources of audit adjustments, and it’s almost always a documentation problem rather than an intentional error.
High-risk reclassification scenarios to watch for:
Admin employees who now do field work: An office manager who started helping with site visits, a coordinator who now does light installation work. The job title hasn’t changed, but the duties have.
Supervisors performing manual labor: In smaller operations especially, supervisors often get their hands dirty. If a supervisor is regularly performing the same physical tasks as crew members, they may need to be classified under a field labor code rather than a supervisory one.
Seasonal workers added outside normal onboarding: Employees brought on quickly during busy periods sometimes get assigned default codes rather than the correct ones for their actual work.
The practical action here is to request a classification report from your G&A account manager — a document that shows each employee, their current assigned class code, and the associated rate. Then cross-reference that report against your current employee roster and actual job duties.
If you find discrepancies, document the correct job duties in writing before the audit takes place. Corrections made proactively — before an auditor flags them — carry significantly more weight than corrections made in response to findings. An auditor who identifies a misclassification is likely to apply it retroactively across the audit period. A correction you identify and document first is a different conversation entirely.
If you operate in roofing, electrical, plumbing, or other high-base-rate trades, classification accuracy is especially high-stakes. These industries face more aggressive scrutiny during audits because the rate differential between a correctly classified employee and a misclassified one can be substantial. A PEO approach to construction workers’ comp can help structure classification management in high-risk trades before audit season arrives.
Step 5: Address Subcontractors and 1099 Workers Proactively
This is the area where unexpected audit adjustments are most likely to come from, and it’s the one that business owners are most likely to underestimate until it’s too late.
Under most workers’ comp policies — including PEO master policies — if a subcontractor cannot provide a valid certificate of insurance showing active workers’ comp coverage during the dates they performed work for you, their labor costs may be reclassified as your payroll. That means their wages get added to your premium calculation, often at the highest applicable class code for the type of work they performed.
This isn’t a technicality. It’s a standard provision in workers’ comp policy language, and auditors look for it specifically. The logic is straightforward: if a worker gets injured on your job site and they don’t have their own coverage, someone is responsible for that claim. The policy treats them as your employee for premium purposes.
Here’s what you need to do before the audit:
Collect COIs for every subcontractor used during the audit period. Not just current COIs — certificates that were active during the specific dates those subcontractors performed work for you. A COI that’s current today but expired six months ago doesn’t cover the period in question.
Verify the coverage type on each COI. You want to confirm they carry workers’ comp coverage, not just general liability. These are different policies, and auditors distinguish between them.
Check your G&A service agreement for subcontractor provisions. Some PEOs explicitly exclude subcontractor coverage from the master policy. Others have specific procedures for adding them or for documenting their exclusion. You need to know where G&A stands on this before the audit, not during it.
Scrutinize your 1099 workers. If you used 1099 workers who performed work substantially similar to your W-2 employees — same job site, same type of work, same supervision structure — be prepared for the auditor to examine their classification. Worker misclassification is a separate but related issue that can surface during a workers’ comp audit.
The single most useful thing you can do on this front is build a subcontractor log for the audit period. It doesn’t need to be complex: company name, dates of work, scope of work, and COI expiration date. One organized document can prevent a significant premium adjustment, and it demonstrates to the auditor that you’re managing subcontractor compliance actively rather than reactively. How other PEOs handle this same documentation requirement is worth understanding — the Vensure Employer Solutions workers’ comp audit process illustrates how subcontractor documentation is typically managed under a PEO master policy.
Step 6: Respond to Audit Findings and Dispute Errors the Right Way
Once the audit is complete, G&A Partners will receive a final audit report from the carrier. This report reconciles the estimated payroll used to set your original premium against the actual payroll documented during the audit. If actual payroll was higher than estimated, you’ll owe additional premium. If it was lower, you may receive a credit.
Before any adjustment is finalized, review the report carefully. Don’t accept it as final just because it came from the carrier. Audit errors are more common than most people expect, and they typically fall into a few categories:
Incorrect payroll figures: Wages that were double-counted, included for the wrong period, or attributed to the wrong classification.
Misapplied class codes: Employees assigned to a higher-rate code than their actual duties warrant.
Subcontractor payroll that should have been excluded: If you provided valid COIs for subcontractors and they still appear in the report as your payroll, that’s a disputable finding.
Duplicate entries: Less common, but it happens — especially when records come from multiple sources during the audit process.
If you identify errors, work through your G&A account manager to dispute them — not directly with the carrier. G&A is the named insured on the master policy, which means they have standing to challenge findings on your behalf. You don’t. Going around G&A to contact the carrier directly can create confusion and may actually weaken your position.
When you submit a dispute, be specific. Identify the exact line item being challenged, provide the correct figure or classification, and attach supporting documentation — payroll records, COIs, written job duty descriptions. Vague disputes without documentation rarely go anywhere. Specific, documented disputes backed by clear evidence are a different matter. If you’re facing a dispute that extends beyond workers’ comp into broader employment questions, understanding PEO labor audit defense can help you understand what formal dispute support looks like under a co-employment arrangement.
Ask your G&A account manager how long you have to respond once preliminary findings are issued. Audit disputes have deadlines, and missing them can mean accepting findings you could have successfully challenged.
If the audit results in a significant premium adjustment that you believe is incorrect — particularly for amounts that would materially affect your operating costs — consider engaging an independent insurance consultant or attorney who specializes in workers’ comp audits. This is worth the cost for adjustments above a threshold that makes sense for your business size. A specialist can often identify disputable items that aren’t obvious to someone without deep policy knowledge.
And if this audit process has revealed that G&A’s support has been unclear, slow, or reactive when you needed proactive guidance, that’s worth factoring into your next renewal decision. Audit support quality is a real differentiator between PEO providers, and it’s not always visible until you’re in a situation like this one.
Your Audit Readiness Checklist and What to Do Next
Before you close out this process — or before the next audit cycle begins — here’s a quick-reference checklist of what you need to have organized:
Payroll records by quarter: Total wages per employee, broken down for the full audit period.
Employee classification report: Requested from G&A, showing each employee’s assigned class code and rate.
Subcontractor COI log: Company name, dates of work, scope of work, COI expiration date — for every subcontractor used during the audit period.
Mid-year workforce change documentation: Any hiring, terminations, role changes, or classification updates that occurred during the year.
G&A account manager contact confirmed: You have a direct line to the right person and know who to escalate to if needed.
The business owners who come out of workers’ comp audits cleanly aren’t doing anything complicated. They’re maintaining records throughout the year, notifying G&A when workforce changes happen, and keeping subcontractor documentation current. That’s it. The audit itself becomes a straightforward reconciliation rather than a scramble.
If you’re evaluating whether G&A Partners is the right long-term fit for your workers’ comp needs — or if this audit process has raised questions about the quality of support you’re receiving — audit coordination is one of the areas where PEO providers differ meaningfully. Some providers are more proactive, more responsive, and more transparent about how audit adjustments are calculated.
You can compare your options using our independent PEO comparison platform to see how G&A Partners stacks up against other providers on workers’ comp handling, audit support, and overall service quality. No sales pitch — just a side-by-side look at the factors that actually matter when you’re making this decision.