At the beginning of the workers' compensation policy term the employer may not be absolutely certain about the total payrolls for the coming year requiring them to estimate the payroll amount. The insurance carrier allows this estimation because they know they have the opportunity to audit the payrolls at the end of the policy period to ensure the actual payroll is reported and the proper premium is paid.
While a payroll audit sounds simple enough - the insurance carrier looks at the employer's payroll records - there is some complexity to the audit process that must not be overlooked. Afterall, the employer doesn't want to pay more than is necessary.
This session focuses on the complexity and nuances of the audit process including the concepts of governing classification, the single enterprise rule and the exceptions to these rules. Also detailed are the ABC's of the premium audit.