WORKERS ' COMPENSATION
" WORK WITH YOUR GIS ADVISOR AT THE BEGINNING OF THE PERIOD TO MAKE SURE
THAT ALL OF YOUR EMPLOYEES
ARE CLASSIFIED CORRECTLY ."
Preparing For Your Workers ’ Compensation Premium Audit
Workers ’ compensation requirements vary between states , but most policies include a premium audit . The audit is required because premiums are typically paid up front based on estimated payroll dollars . The auditing process is designed to then verify these estimates at the end of the year and make adjustments to rates as needed .
A workers ’ compensation auditor will typically reach out to you within 60 days of your policy ’ s expiration . Audits can take place remotely or in person . They do not happen by surprise , and you will always be given sufficient time to prepare for your audit . Audits can , however , become cumbersome for larger companies with a lot of information to go through .
If the auditor deems that the premiums you paid up front were insufficient based on the actual payroll dollars paid to your employees throughout the year , you may find yourself paying substantially more than you expected for your workers ’ compensation policy . However , if your payroll was less than estimated , you may receive a rebate at the end of the policy year . This is where it pays to work closely with your insurance advisor .
WHAT YOUR AUDITOR IS LOOKING FOR
Your workers ’ compensation auditor is going to be looking at three things : your employee classification , your payroll , and your experience modification factor . These are the three things that affect the
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