By: James Morgan, Master Certified Workers' Comp Advisor (MWCA), Towne InsuranceDon't Disrupt Your Work Flow
Workers’ compensation costs can be 30 to 50 percent of an employer’s insurance costs. When your insurance policy first goes into effect, your premium cost is based on assigned classifications, estimated payrolls (referred to as remuneration) and an experience modification factor. At the policy’s expiration, the insurance company conducts a payroll audit and converts estimated payrolls into actual payrolls. It then assigns those payrolls to a classification. Is that classification correct?
To simplify the audit process, it was designed so all mistakes or missing information default in favor of the insurance company. By preparing a complete and thorough audit package when your policy starts, you guarantee an accurate, mistake-free, time and money-saving audit. The tips below will help you prepare for the auditor’s visit.