Payroll Audit – More Used Term Premium Audit
A payroll audit for Workers comp is actually not a fully accurate term. The term also known as a premium audit. Actually, either term is correct. A payroll audit may also be called a policy audit.
This blog has provided many articles on the premium audit process. Feel free to search for the term premium audit or click here. The search results rank the relationship to the search words.
This is also referred to as a premium audit. Your policy contains a summary of the rules on when and how your company may be audited by your current or prior insurance carriers. Reading your policy before questioning or disputing an audit may save your company time and headaches every year. The premium audit workpapers may also be very helpful.
In Workers Comp the insurer will send an auditor (subcontractor or staff employee) to examine/audit the remuneration reported by the insured. The purpose is to determine if the premium is adequate and covers all employees. There are many posts in this blog on payroll or premium audits.
You may find them by using the search box on the right side of the web page. The key to any audit is having data to provide the premium auditor that is concise and complete. The payroll figure accuracy is tantamount to have a successful audit.
Microsoft Excel is always the best way to organize the data into nice spreadsheets. The premium audit department will usually send an audit notice letter approximately one month prior to the audit date.
If you cannot meet the auditor on the proposed date, call the audit department as soon as possible. Emailing the auditor remains the best way to reschedule a premium audit for documentation purposes.
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