My policy is on Pay As You Go, so why do I have an audit?

Great question! Even though Pay As You Go is a highly accurate way to pay your workers’ comp premium, the audit difference could be for a reason other than premium payments. 

For instance, your carrier may want to  verify that the work your employees perform is in accordance with the class code(s) listed on the policy.

In any case, even with Pay As You Go, carriers reserve the right to audit any policy annually.   

Insureds who are on pay-as-you-go may overpay or owe additional premiums because their policy is not up-to-date with all relevant information which can include drastic payroll changes, officer/ownership changes, officer exemption filings, new location information, subcontractors, etc…

In situations like these, the WC rate we collect at for the pay-as-you-go might be incorrect. That's why Audits are designed to spot any potentially inaccurate information and make the necessary corrections.