What is a workers’ comp audit, and why do I have one?

At the end of each policy term, the insurance carrier is required to perform a reconciliation of the initial estimate against actual information, called an audit.  This information is used to create the renewal term (if applicable) and collect or refund any differences.

For Pay As You Go policies, the carrier is often able to use the payroll information from our system to complete the audit. They do sometimes choose to do a full audit instead, and in those cases, they will reach out with what they need from you to complete the audit. 

Although we do collect premium based on your actual payroll, the rate we collect premium at is a rate our system generates to incorporate any non-payroll premium into the premium we collect with your payroll. The rate that is generated is intended to collect the correct amount assuming the estimated amount of payroll is ran. If more or less than the estimated payroll is actually run during the year, the rate is no longer 100% accurate, which can result in either additional premium being due or a refund back to you after the audit is completed.