Work Comp Audit 101

If you are an experienced Business Owner with Employees and a Workers Compensation policy, you have likely been through a Workers Compensation Audit a number of times. If you are a newer business, you may have been through an Audit before. I wanted to explain how the work comp audit works and the purpose.

Workers Compensation Insurance charges paced on the amount of employee payroll that you have. At the end of your term period of insurance, the insurance company will audit your payroll bookkeeping to find out the exact amount of payroll that you have.

As a result of this audit, your work comp insurance policy will adjust. You will end up paying the exact amount of payroll that you have for the current term and your policy will adjust for your next term.

If you are being charged at $100,000 in annual payroll. If your audit ends up being $120,000, than, you will be charged for an additional $20,000 for the payroll shortage. If you have $80,000 in payroll, than you will receive a credit of $20,000 towards your next years insurance premium and your next years payroll on the policy will be reduced.

#insuranceagent #workcomp #insuranceagency #businessinsurance #businessowner #workerscompensation #workcomp #workcompinsurance
#liability