Payroll Audit Dispute And NCCI
Is a Payroll Audit Dispute worth our time? How long do we have to dispute the premium audit results that we just received? Should we call in NCCI to do an inspection?
We have often seen where the insurance carrier tells the employer that they have ten days to pay or dispute an audit when sending an audit billing. Most State Rating Bureaus and the NCCI allow a dispute up to 30 days after receipt of the audit results. That does not mean the receipt of the billing if a notice of audit adjustment has preceded the billing.
Calling in your State Rating Bureau or the NCCI and disputing the audit may cost your company more than it is worth. It is usually best to dispute the audit with the insurance carrier. If you call in NCCI, you will have to pay for the inspection, which can be expensive.
What happens if the NCCI causes your rates to be ever higher after their inspection? You can possibly cost your company even more Workers Comp premiums. There are certain times such as these to call in an expert such as J&L to examine the premium audit.
If you have a legitimate disagreement with your company’s final audit, the first person to contact is your agent. Please remember that your policy and Rate Bureau rules usually require the employer to make the written dispute.
The dispute should not come directly from your agent. The agent should help you with your dispute. Always follow what is in your policy. Watch the time limits you have to dispute a premium audit. Do not just file it away to get to it later down the road. Take action as soon as possible. The clock starts ticking when your receive the audit bill.
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