Private self-insured employers shall submit what annually?

• A. Tax returns
• B. Annual report
• C. Audited financial statements
• D. Balance sheets only

Answer: (C)

Private self-insured employers are required to submit annually audited financial statements. The independent CPA audit provides an objective, verifiable view of the plan’s financial condition, including assets, liabilities, and reserves set aside for future claim payments. This helps regulators assess solvency and ensure the plan can meet its workers’ compensation obligations.

Tax returns are filed for tax purposes and don’t verify the plan’s ability to pay future claims. An annual report may not be independently verified and won’t necessarily reflect the true financial health. A balance sheet alone lacks the broader view of operations and the auditor’s assurance about liabilities and reserves. Audited financial statements deliver the comprehensive, verified snapshot regulators rely on.