Premium Audit Workpapers – No Harm To Ask For Them
Premium audit workpapers are one of the audit items that are seldom provided to employers. I have also seen them provided to employers with the audit results or at the time of the premium audit bill. Along those lines, I received this question last week.
Is it a requirement that the premium auditor provide our company with a copy of the audit workpapers?
I think we should first start off with the definition of the premium audit workpapers. They are handwritten or computerized step-by-step background notes of how the auditor calculated the premium during an audit. I have also seen a computerized or handwritten checklist, especially in California.
The auditor will usually record each step of their audit as justification of why they changed any of the payroll amounts. The audit workpapers are usually very organized and easy to read. It is a good place to review if there are questions on any part of the premium audit.
The premium auditor is actually required in most states to provide the employer with a copy of the workpapers. Paying for an audit without the workpapers would be similar to paying an electric bill without knowing how much energy was used by your company.
It is always a good idea to ask for them if the auditor did not leave the workpapers behind on a recent audit. An email to the auditor or your agent asking for the workpapers will usually result in your company being provided with a copy very quickly.
Once you have received the workpapers, it may be a good idea to scan over them to see how the auditor calculated your final premium bill. The workpapers should not really be that lengthy unless your company is very large, has many locations in multiple states, or is a temporary employment agency.
If, after reviewing the workpapers, you feel that your company was overcharged, you may want to contact a premium audit expert company such as J&L. The main thing is to not just write out premium checks if you do not understand the justification for the charges.
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