Wage audit process

Need to know more about the wage audit process? Here are some of our most commonly asked questions.

    Frequently asked questions

  • To ensure that the correct wages have been used in employer premium calculations. This helps icare calculate a fair and accurate premium for all employers that is reflective of each employer's risk profile.

    icare is required by State Insurance Regulatory Authority (SIRA) to have an employer premium compliance program and wage audits form part of that program.

  • Policies are generally selected for audit utilising data analytics, based on several potential risk factors, or, as a result of a referral (for example from other government agencies such as SIRA or SafeWork NSW). You may also be selected for a wage audit if you have not submitted a Declaration of Actual Wages for a particular policy period.
  • The auditor will contact you to arrange a date for the audit. The timeframes are generally flexible and can be adjusted to suit your needs. However, the auditor is required to complete their final report within four months of being engaged.
  • No, compliance with a wage audit request is subject to legislation and you will need to cooperate with icare and the auditor to allow the audit to be completed.
  • The time will depend on the size and complexity of the business and the wage records provided.

  • The auditor's costs are generally paid by icare. However, if the audit identifies that your wages have been under-declared by an amount of 25 per cent or more, legislation allows for recovery of the cost of the audit from you.

    icare is not responsible for any costs incurred by an employer in relation to a wage audit.

  • The audits are conducted by independent auditors that have been selected from icare’s wage audit panel.
  • The list of wage records and details required are included in the letter you will receive from the wage auditor, notifying you of the wage audit. Generally, these records would support your wage declaration.

  • The definition of wages for ATO purposes and for NSW Workers Compensation are different for example, in the treatment of contractors / deemed workers. Also, ATO data may not be detailed enough to identify all payments considered as wages for Workers Compensation purposes.

    In addition, the ATO receives wages information at a Federal level, whereas icare only requires information relating to NSW. Employers that operate across more than one State, or even internationally, may be required to provide different information according to the requirements of each State or Federal agency. 

  • Wage audits are generally conducted remotely, with you or your accountant providing the requested information electronically. There is usually no need for the wage auditor to attend your business in person. As well as providing more flexibility, this allows the process to be contact-free and reduces travel.

  • The wage auditor is a specialised provider who conducts the wage audit on behalf of icare. icare is responsible for having a program of employer compliance, and ensuring premiums charged for the workers compensation scheme are reflective of the risk to ensure a sustainable and fair scheme.

    Unless you lodge an appeal regarding the wage audit outcome, icare will not generally contact you regarding the wage audit, other than in relation to any premium adjustment (including any associated late payment fees for the original premium due date) and / or recoverable audit costs. 

  • Yes, the auditor will discuss the results of their findings with you at the end of the audit before finalising their report. You will be able to provide any further information you think should have been considered at this time, if you believe the result is not correct.

  • icare will process the results by adjusting the wages previously held for the policy periods that were audited. Dependent upon the overall result of the audit you may receive a premium refund or be required to pay an additional premium amount, including late payment fees and recoverable audit costs, if applicable.

  • Yes, if you still don’t agree with the result of the audit, you can request a review. You will be required to provide additional/new information not previously provided during the wage audit to support the review.

    You will need to email us with this information for consideration by replying to the email you would have received with the policy documents and audit result attached.

    You can also contact our Customer Support Centre on 13 44 22 if you would like to discuss the matter. 

  • Yes, all employers are still able to seek further resolution of a dispute with SIRA if they are not satisfied with the result of their complaint with icare.
  • You should provide an alternate contact person who the auditor can liaise with, such as the company’s accountant, or arrange for the requested records to be provided electronically.
  • No—the auditor's result is final, subject to the appeals process as referred to above.

  • At the end of the wage audit, the Auditor will email you a link to a survey that you can complete anonymously. Your responses and feedback go directly to icare; the wage auditor is not sent this information. icare reviews this feedback and actions it as appropriate.

  • The most common finding is that wages used in the calculation of your premium (whether renewed automatically or updated estimated wages have been provided) differ from actual wages, especially where no final wages figures have been submitted to icare.

    Other findings include incorrect exclusion of contractors, arithmetic errors and incorrect exclusion of superannuation or director's fees. Most wage audits result in a premium increase, but some do result in a refund. Call our Payment Services Team on 13 44 22 if you need to discuss payment of any additional premium arising from a wage audit.

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