Track each employee's individual actual job duties and keep payroll records that reflect how many hours an employee works on different activities. For example, if an employee spends 20 hours of his time installing and repairing plumbing and 20 hours a week pouring and finishing concrete slabs for residences, record this information and keep it on file. In insurance lingo, this is called "payroll segregation." It helps premium auditors ensure that your workers' compensation cost is accurate and keeps you getting overcharged.  If this is not done, the auditor may place all of the payroll in the highest priced class code.

Last updated on June 1, 2010 by Chris Moxley