Workers Comp Audit Stress Reducer
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Payroll Audit Date Most Important Date For Employers Premiums


Your Workers Comp Premiums – Payroll Audit Date

The payroll audit date comes around once a year.   This date should be marked on all employer calendars.

Picture Calculation Workers Comp Premiums Payroll Audit Date with coins and form

Your workers comp premiums center around a date that many companies ignore.  In my last post, I pointed out that if your company has a policy renewing on 1/1/09, it is too late to worry about your E-Mod/X-Mod. Other than providing proper payroll forecasts for the 2009 policy year, there should be more of a concern for the upcoming 2008 policy year payroll audit.

The payroll audit should occur within 60 days after the policy expiration date.

Regardless of what is in your original policy for 2008, the payroll audit is the judge and jury on this policy. The payroll audit usually occurs approximately 30 days after the 2008 policy year ends. The original 2008 policy can be altered in many ways resulting in a much more expensive policy than anticipated. We received many calls and emails just after a payroll audit and billing were completed.

If you receive an audit bill, you have the right to an explanation of all increases in your original premiums. Do not refuse to pay the audit billing unless there is a legitimate dispute with the payroll audit. Many states give the insurance carriers the right to immediately cancel the current Workers Comp policy if an employer does not pay an undisputed audit billing. We sometimes see where our clients have disputed an audit only to find out their payroll had increased sharply, which will result in a large premium audit bill.

Calculating Workers Comp Premiums Bills Image

I will cover the Red Flags From A Payroll Audit next time.  Many companies expect their policy to determine their workers comp premiums.   A company needs its efforts to center on the premium audit date.   This will enable to the company to pay the correct workers comp premiums from the premium audit bill.

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James J Moore - Workers Comp Expert

Raleigh, NC, United States

About The Author...

James founded a Workers’ Compensation consulting firm, J&L Risk Management Consultants, Inc. in 1996. J&L’s mission is to reduce our clients’ Workers Compensation premiums by using time-tested techniques. J&L’s claims, premium, reserve and Experience Mod reviews have saved employers over $9.8 million in earned premiums over the last three years. J&L has saved numerous companies from bankruptcy proceedings as a result of insurance overpayments.

James has over 27 years of experience in insurance claims, audit, and underwriting, specializing in Workers’ Compensation. He has supervised, and managed the administration of Workers’ Compensation claims, and underwriting in over 45 states. His professional experience includes being the Director of Risk Management for the North Carolina School Boards Association. He created a very successful Workers’ Compensation Injury Rehabilitation Unit for school personnel.

James’s educational background, which centered on computer technology, culminated in earning a Masters of Business Administration (MBA); an Associate in Claims designation (AIC); and an Associate in Risk Management designation (ARM). He is a Chartered Financial Consultant (ChFC) and a licensed financial advisor. The NC Department of Insurance has certified him as an insurance instructor. He also possesses a Bachelors’ Degree in Actuarial Science.

LexisNexis has twice recognized his blog as one of the Top 25 Blogs on Workers’ Compensation. J&L has been listed in AM Best’s Preferred Providers Directory for Insurance Experts – Workers Compensation for over eight years. He recently won the prestigious Baucom Shine Lifetime Achievement Award for his volunteer contributions to the area of risk management and safety. James was recently named as an instructor for the prestigious Insurance Academy.

James is on the Board of Directors and Treasurer of the North Carolina Mid-State Safety Council. He has published two manuals on Workers’ Compensation and three different claims processing manuals. He has also written and has been quoted in numerous articles on reducing Workers’ Compensation costs for public and private employers. James publishes a weekly newsletter with 7,000 readers.

He currently possess press credentials and am invited to various national Workers Compensation conferences as a reporter.

James’s articles or interviews on Workers’ Compensation have appeared in the following publications or websites:

  • Risk and Insurance Management Society (RIMS)
  • Entrepreneur Magazine
  • Bloomberg Business News
  • WorkCompCentral.com
  • Claims Magazine
  • Risk & Insurance Magazine
  • Insurance Journal
  • Workers Compensation.com
  • LinkedIn, Twitter, Facebook and other social media sites
  • Various trade publications


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